Bond Market Update

Little Changed After FOMC

• U.S. Treasuries have shown a limited reaction to the FOMC Statement, which did not produce any surprises with the Fed keeping the fed funds rate range between 4.25% and 4.50%. The market was also correct to expect a dissent from a couple policymakers, as Fed Governors Waller and Bowman voted in favor of a 25-basis point rate cut, representing the first dissent by two policymakers since 1993. The 2-yr note has seen some buying in reaction to the Statement while longer tenors remain near levels from the early afternoon.
• Yield Check:
  • 2-yr: UNCH at 3.88%
  • 3-yr: +1 bp to 3.83%
  • 5-yr: +2 bps to 3.92%
  • 10-yr: +2 bps to 4.35%
  • 30-yr: +3 bps to 4.90%