Bond Market Update

Sitting Tight

• Stocks have retained the bulk of their opening gains but have settled into a narrow range-bound trade, which has been a familiar pattern for most of this year. Treasuries, in turn, have retained the bulk of the overnight gains but have also gone into a sideways drift during the cash session.
• Most securities along the curve have traded in a two-basis-point range for the majority of the cash session.
• The FOMC will begin its two-day meeting tomorrow. The policy decision and updated Summary of Economic Projections (SEP) will be released Wednesday at 2:00 p.m. ET. The Fed is widely expected to keep the target range for the fed funds rate unchanged at 3.50-3.75%, but with the events in Iran, the market will be keying off the SEP and Fed Chair Powell's press conference at 2:30 p.m. ET.
• Tuesday's session will feature a $13 billion 20-yr bond reopening. Results will be announced at 1:00 p.m. ET.
• Yield check:
  • 2-yr: -5 bps to 3.68%
  • 3-yr: -5 bps to 3.70%
  • 5-yr: -6 bps to 3.81%
  • 10-yr: -6 bps to 4.23%
  • 30-yr: -4 bps to 4.87%