Bond Market Update

FOMC Ahead

• U.S. Treasuries trade just above their mid-morning lows with another hour to go before the release of the latest policy Statement from the FOMC, which the market hopes will show some hints of dovishness from policymakers. Fed Chairman Powell has been repeating since November that there is no rush to adjust policy, but there is some hope that he will soften his stance given the recent weakness in mega cap equities and concerns about a Q1 contraction, reflected by the Atlanta Fed's GDPNow forecast for a 1.8% decrease in GDP.
• Yield Check:
  • 2-yr: +4 bps to 4.08%
  • 3-yr: +5 bps to 4.06%
  • 5-yr: +5 bps to 4.12%
  • 10-yr: +3 bps to 4.31%
  • 30-yr: +2 bps to 4.60%