Bond Market Update

Short End Boosted by FOMC

• Longer-dated Treasuries have bounced back to their opening levels while shorter tenors have rallied to fresh highs in immediate reaction to the FOMC Statement for March and updated economic projections. These projections showed a reduced growth forecast to 1.5-1.9% from 1.8-2.2% and expectations among policymakers for about 50 basis points of rate cuts this year. Still, the FOMC increased its forecast for this year's fed funds rate range to 3.90% to 4.40% from 3.60% to 4.10% that was projected in December, reflecting increased hawkishness.
• Yield Check:
  • 2-yr: -3 bps to 4.02%
  • 3-yr: -3 bps to 4.00%
  • 5-yr: -1 bp to 4.07%
  • 10-yr: UNCH at 4.28%
  • 30-yr: +1 bp to 4.59%