Bond Market Update

FOMC Holds

• Longer-dated Treasuries have backed down from their intraday highs with the long bond sliding to a fresh low while the 2-yr note has climbed to a new high after the FOMC released its July Statement, which did not result in a higher fed funds rate range. However, three policymakers dissented, voting for a hike. The Statement itself was essentially a carbon copy of the directive from June and Fed Chairman Warsh will face the media at 14:30 ET.
• Yield Check:
  • 2-yr: -1 bp to 4.27%
  • 3-yr: UNCH at 4.30%
  • 5-yr: +1 bp to 4.38%
  • 10-yr: +3 bps to 4.63%
  • 30-yr: +5 bps to 5.14%