Shares of banks and lenders slipped as Federal Reserve officials began a two-day monetary policy meeting that will be scrutinized by investors for insight into the central bank's plans regarding its bond purchases and interest rates.

Yields on long-dated Treasurys rose, a day after U.S. government debt experienced its biggest rally in weeks amid worries about the possible collapse of Chinese property development company Evergrande and the potential for global financial contagion.

The boss of beleaguered China Evergrande said he expects the developer to emerge soon from what he called its "darkest moment" and pledged to deliver the homes it has promised to buyers and other stakeholders. In a memo to employees on Tuesday, which is the Mid-Autumn Festival and a holiday in mainland China, Evergrande Chairman Hui Ka Yan said the company is dealing with unprecedented difficulties and its employees are facing severe challenges.

In deal news, U.S. Bancorp agreed to buy MUFG Union Bank's core retail banking operations in an $8 billion cash-and-stock deal meant to boost the Minneapolis-based bank's presence on the West Coast. The deal, if completed, would give U.S. Bank about $664 billion in assets and solidify its status as the fifth-largest retail bank in the country.

Real-estate developer Hines Interests and a South Korean pension fund are planning a $2.5 billion-plus office and apartment project in San Francisco, a vote of confidence in one of the markets most upended by the pandemic.


 Write to Amy Pessetto at amy.pessetto@dowjones.com 

(END) Dow Jones Newswires

09-21-21 1724ET