Bond Market Update

Fresh Highs After Rate Cut News

• U.S. Treasuries have rallied to highs in immediate reaction to the September FOMC Statement, which called for a 25-basis point rate cut. The entire complex has rallied past its highs from this morning with yields on most tenors now down about two basis points. In addition to the expected rate cut, the FOMC released its updated economic projections. These projections showed that 2025 GDP is expected between 1.4% and 1.7%, up from the previous forecast for growth between 1.2% and 1.5%. PCE inflation is expected between 2.9% and 3.0% for the year while the previous forecast called for an increase between 2.8% and 3.2%. Fed Chairman Powell will begin his press conference shortly.
• Yield Check:
  • 2-yr: -2 bps to 3.49%
  • 3-yr: UNCH at 3.47%
  • 5-yr: -1 bp to 3.58%
  • 10-yr: -2 bps to 4.01%
  • 30-yr: -2 bps to 4.62%