Treasury Yields Fall Further Ahead of Fed Decision–Market Talk
(Dow Jones)–Treasurys extend their rally, sending yields lower, as markets wait for hints on monetary policy this afternoon after an expected25-basis point rate increase. The 10-year is at 3.415% and the two-year at 3.974%, after a boost from higher-than-expected ADP jobs report. The banking crisis is likely to be part of monetary policy discussions, after Tuesday’s sharp decline on midsize bank stocks.
“There are many variables out of the Fed’s hands with this banking evolution,” AmeriVet’s Gregory Faranello says in a note. He expects a hike today to be followed by language indicating that “the next move is more likely a hike than a pause.”
By: Paulo Trevisani (email@example.com)