Forex Marketz Daily Forex News – Fully Markets Update
U.S. Treasury yields, during North American trade hours on Tuesday, moved higher. The Federal Open Market Committee (FOMC) began a two day log monetary policy and rate decision meeting. The yield on the two year Treasury note hit a nine year high and the five year note was at a seven year high.
The yield on the two year note was above 2.35 percent. This is its highest level since August 2008. The yield on the five year note was at 2.7 percent. This is its highest yield since April 2010.
As of 7 pm EST, the yield on the benchmark 10 year Treasury note was also up. It was near 2.9 percent. The yield on the long term 30 year bond was also up at 3.133 percent. Again, please remember that bond yields move inversely to prices.
Treasury Traders wait on Today’s FOMC Decision
Policy makers in the FOMC started their meeting on Tuesday. This was day one of a two day meeting on monetary policy. This meeting will also make any adjustments to the federal funds rate. The Federal Reserve’s monetary policy arm is expected to raise rates for the first time in 2018. This is also the first meeting chaired by newly appointed Federal Reserve Board Chair Jerome Powell.
Investors are waiting to see whether will hike rates. Traders will also be paying close attention to whether the Federal Reserve comments. They will be listening to topics such as inflation, the state of the U.S. economy and politics. Also to any revisions to long term expectations and its rate hike path in 2018. These will impact the bond market as the return on debt becomes volatile.
The Fed will likely keep mum on any discussion related to trade wars thanks to the recent market volatility on the subject.
