Bond Market Update

FOMC Ahead

• U.S. Treasuries have retreated from their morning highs, finding support near their unchanged levels about an hour ago. This leaves the market flat ahead of the upcoming FOMC Statement at 14:00 ET and Fed Chairman Powell's press conference at 14:30 ET. The market will be particularly curious to hear if Chairman Powell's comments come off as hawkish, which could upset expectations for a rate cut in May. The fed funds futures market is still essentially split regarding the likelihood of a rate cut in May. Equities have recently slid to lows with the S&P 500 widening its loss to 0.8%.
• Yield Check:
  • 2-yr: UNCH at 4.21%
  • 3-yr: UNCH at 4.26%
  • 5-yr: UNCH at 4.34%
  • 10-yr: -1 bp to 4.55%
  • 30-yr: UNCH at 4.79%