US Markets

Yields down ahead of Fed meeting wrap-up

Credit: REUTERS/Mike Segar

U.S. Treasury yields were lower on Wednesday as the market awaited the end of the Federal Reserve's two-day meeting and the central bank's latest take on rescuing the sinking economy.

CHICAGO, April 29 - U.S. Treasury yields were lower on Wednesday as the market awaited the end of the Federal Reserve's two-day meeting and the central bank's latest take on rescuing the sinking economy.

The benchmark 10-year US10YT=RR yield was last down 1.5 basis points at 0.5954%.

The U.S. Commerce Department reported a steeper-than-expected economic contraction in the first quarter as shutdowns due to coronavirus outbreak began. The advance first quarter gross domestic product fell at a 4.8% annual rate, exceeding economists' forecasts of 4.0%.

"Ultimately, the market knew this was bad, didn't know the exact number, but knew that it was a significant negative leading to what will be a more significant negative," said Justin Hoogendoorn, head of the fixed income strategic analytics at Piper Sandler in Chicago.

Yields had ticked a little higher after Gilead Sciences Inc GILD.0 reported that its experimental antiviral drug remdesivir helped improved symptoms in COVID-19 patients who were administered the medication early.

Later on Wednesday, the Fed is expected to reiterate its promise to do whatever it takes to support the U.S. economy. It could also signal how long it plans to leave interest rates near zero.

The two-year US2YT=RR U.S. Treasury yield, which typically moves in step with interest rate expectations, was last down 1.4 basis points at 0.1955%.

April 29 Wednesday 9:22AM New York / 1422 GMT

Price

Current Yield %

Net Change (bps)

Three-month bills US3MT=RR

0.105

0.1068

0.001

Six-month bills US6MT=RR

0.1275

0.1294

-0.011

Two-year note US2YT=RR

99-220/256

0.1955

-0.014

Three-year note US3YT=RR

100-4/256

0.2447

-0.021

Five-year note US5YT=RR

100-34/256

0.3482

-0.021

Seven-year note US7YT=RR

100

0.5

-0.022

10-year note US10YT=RR

108-152/256

0.5954

-0.015

30-year bond US30YT=RR

120-68/256

1.1901

-0.017

DOLLAR SWAP SPREADS

Last (bps)

Net Change (bps)

U.S. 2-year dollar swap spread

12.50

-1.50

U.S. 3-year dollar swap spread

7.50

-0.75

U.S. 5-year dollar swap spread

4.75

-0.75

U.S. 10-year dollar swap spread

0.75

0.25

U.S. 30-year dollar swap spread

-43.25

0.75

(By Karen Pierog in Chicago)

((karen.pierog@thomsonreuters.com; +1 312 408 8647; Reuters Messaging: karen.pierog.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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