Bond Market Update

Gains Extended

• U.S. Treasuries have extended to fresh highs in immediate reaction to the FOMC Statement for May. As expected, the Statement did not call for any policy changes at this time, but it acknowledged that uncertainty around the economic outlook has increased, which could be seen as a sign that the central bank is becoming more open to reducing the fed funds rate range. With the post-FOMC advance, the 10-yr yield is now back below its 50-day moving average (4.276%). Fed Chairman Powell's press conference will begin at 14:30 ET.
• Yield Check:
  • 2-yr: -2 bps to 3.77%
  • 3-yr: -3 bps to 3.73%
  • 5-yr: -4 bps to 3.86%
  • 10-yr: -4 bps to 4.27%
  • 30-yr: -5 bps to 4.77%