Yields on US Treasuries rose in early trading on Wednesday as investors wait to see if the Federal Reserve makes any changes to its policy statement at the end of the central bank meeting. The yield on the 10-year Treasury note BX: TMUBMUSD10Y rose 1.7 basis points to 1.637%, around its highest level in two months. The yield on the 30-year BX: TMUBMUSD30Y was 2.303%, while the 2-year BX: TMUBMUSD02Y rate stood at 0.176%. Bond prices move inversely to yields.
What drives the Treasurys? Long-term bond yields rose as investors settled into a more bearish stance ahead of the meeting. Part of the move may reflect speculation that the Fed may remove some terms from its policy statement to acknowledge the improvement in the job market, following gains of nearly 1 million jobs in March. See: The Fed stands by as house prices rise, but here’s what could get in the way. decrease in your considerable asset purchases. Since last year, the Fed has been buying $ 80 billion in Treasuries and $ 40 billion in mortgage-backed securities every month. What did market participants say? “Should Powell not reflect the expected degree of economic optimism given the recent acceleration of vaccines and improving labor data, investors will be reminded that there is still a long way to go before the FOMC achieves its goals. “said Ian Lyngen. , Head of US Interest Rate Strategy at BMO Capital Markets.