Bond Market Update

Fed Ahead

• U.S. Treasuries trade just above session lows after extending their starting losses. This puts the 10-yr yield within ten basis points of its high from late March (4.484%) while the 30-yr yield is now just two basis points below its March high (4.999%) as the market awaits the 14:00 ET release of the FOMC Statement for April. Investors are certain that today's release will not call for any rate changes, but it will give some insight into thoughts of policymakers about the impact of the recent surge in the price of oil. Fed Chairman Powell will begin his final press conference as the leader of the central bank at 14:30 ET. On a related note Fed Chairman nominee Warsh was approved by the Senate Banking Committee and will now face a confirmation vote in the full Senate.
• Yield Check:
  • 2-yr: +8 bps to 3.92%
  • 3-yr: +6 bps to 3.93%
  • 5-yr: +6 bps to 4.05%
  • 10-yr: +5 bps to 4.40%
  • 30-yr: +3 bps to 4.98%