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
Current Yield %
Net Change (bps)
Three-month bills US3MT=RR
Six-month bills US6MT=RR
Two-year note US2YT=RR
Three-year note US3YT=RR
Five-year note US5YT=RR
Seven-year note US7YT=RR
10-year note US10YT=RR
30-year bond US30YT=RR
DOLLAR SWAP SPREADS
Net Change (bps)
U.S. 2-year dollar swap spread
U.S. 3-year dollar swap spread
U.S. 5-year dollar swap spread
U.S. 10-year dollar swap spread
U.S. 30-year dollar swap spread
(By Karen Pierog in Chicago)