Bond Market Update

FOMC Ahead

• U.S. Treasuries are back near their best levels of the session after a brief dip from their morning highs. The market followed its steady opening advance with a shallow pullback that quickly found support, returning action to session highs. Longer tenors remain in the lead while the 2-yr note holds a slim loss with just under an hour until the release of the FOMC Statement for May, which is not expected to call for a change to the fed funds rate range, but could open the door to a rate cut this summer.
• Yield Check:
  • 2-yr: +1 bp to 3.80%
  • 3-yr: UNCH at 3.76%
  • 5-yr: -1 bp to 3.89%
  • 10-yr: -3 bps to 4.28%
  • 30-yr: -4 bps to 4.77%