Bond Market Update

Focus Returns to Inflation

• U.S. Treasuries have slid to lows in immediate reaction to the FOMC Statement. As expected, the Statement did not call for any changes to the fed funds rate range, and it continued lauding the stability of the labor market. However, the Statement no longer says that inflation is making progress toward the goal, which could be seen as somewhat hawkish, and will likely invite additional questions at the press conference that will start at 14:30 ET.
• Yield Check:
  • 2-yr: +4 bps to 4.25%
  • 3-yr: +4 bps to 4.30%
  • 5-yr: +4 bps to 4.39%
  • 10-yr: +3 bps to 4.58%
  • 30-yr: +2 bps to 4.81%