Bond Market Update

FOMC Announces Rate Cut

• U.S. Treasuries have slipped to fresh lows in reaction to the October FOMC Statement, which was right in line with expectations. The FOMC announced a 25-basis point rate cut with two policymakers dissenting. Fed Governor Miran voted in favor of a 50-basis point cut while Kansas City Fed President Schmid voted against cutting the fed funds rate range. In addition to the rate cut, the central bank announced that the quantitative tightening program will conclude on December 1, which was also largely expected going into the release. Treasuries followed their dip to lows with a return to levels seen just before the FOMC Statement with the 10-yr yield currently up three basis points at 4.02%.
• Yield Check:
  • 2-yr: +3 bps to 3.52%
  • 3-yr: +3 bps to 3.53%
  • 5-yr: +3 bps to 3.65%
  • 10-yr: +4 bps to 4.02%
  • 30-yr: +4 bps to 4.58%