Bond Market Update

FOMC Ahead

• U.S. Treasuries trade just below their session highs that were notched about an hour ago as the market awaits the release of the FOMC Statement atop the hour. The market sits on highs leading into the Statement, but today's advance comes after four days of selling in most tenors that has driven the 5-yr yield to its highest level since late August while the 10-yr yield briefly climbed above its September high at today's cash start. The market has little doubt that a rate cut will be announced this afternoon, but it is still unclear if Fed Chairman Powell will maintain his hawkish tone when he speaks to the press at 14:30 ET.
• Yield Check:
  • 2-yr: -2 bps to 3.59%
  • 3-yr: -2 bps to 3.63%
  • 5-yr: -2 bps to 3.76%
  • 10-yr: -3 bps to 4.16%
  • 30-yr: -3 bps to 4.78%