Dow Futures Lower Ahead of Fed Decision on Rates
Treasurys were little changed ahead of the Federal Reserve’s widely expected decision to keep interest rates on hold, but yields have some more room to fall, said Pepperstone’s Michael Brown in a note.
“I still like bonds higher/yields lower here, particularly as growth expectations continue to re-rate lower, and policy uncertainty persists,” the senior research strategist said.
He expects the Fed policymakers not to “rock the boat” by issuing a broadly similar statement to that at the previous meeting. He also expects Fed Chair Jerome Powell to repeat that the FOMC is in no hurry to cut interest rates.
The 10-year Treasury yield rose 1 basis point to last trade at 4.292%, while the 2-year yield was flat at 4.044%, according to LSEG data.