Bond Market Update

FOMC Holds But Disagreements Present

• Recent action saw the 10-yr note and shorter tenors slip to fresh lows in immediate reaction to the April FOMC Statement. As expected, the Statement did not call for any rate changes, but there were several changes in the language. The central bank acknowledged the inflationary impact of the recent jump in energy prices, acknowledging the high level of uncertainty in the economic outlook. Four policymakers dissented, but for different reasons. Fed Governor Miran favored a rate cut while Fed presidents from Cleveland, Minneapolis, and Dallas supported the rate decision, but objected to including an easing bias in the Statement.
• Yield Check:
  • 2-yr: +8 bps to 3.92%
  • 3-yr: +7 bps to 3.94%
  • 5-yr: +8 bps to 4.06%
  • 10-yr: +6 bps to 4.41%
  • 30-yr: +4 bps to 4.98%