Bond Market Update

FOMC Ahead

• U.S. Treasuries trade on their lows with just over an hour remaining until the release of the FOMC Statement for January. While the probability of a surprise change to the Fed's policy stance is minimal, the market will remain on the lookout for hints about potential future changes during Fed Chairman Powell's press conference at 14:30 ET. The market is currently aiming for the next rate cut announcement in June, but that thinking could be altered by comments made by the Fed chairman.
• Yield Check:
  • 2-yr: +2 bps to 3.59%
  • 3-yr: +2 bps to 3.66%
  • 5-yr: +3 bps to 3.85%
  • 10-yr: +4 bps to 4.26%
  • 30-yr: +4 bps to 4.87%