NEW YORK (MarketWatch) — Treasury prices inched higher on Wednesday as investors placed last minute trades ahead of all-important Federal Reserve news.
The central bank concludes its policy meeting on Wednesday, after which it will release a much-anticipated policy statement, hold a press conference, and submit its latest economic projections.
Traders and investors are contemplating whether officials will change language in the statement that suggests the key policy rate will remain near zero for a “considerable” period of time after the Fed’s bond-buying stimulus program ends. (Read: Fed exit may be bumpy ride for investors)
Ahead of the news, the 10-year Treasury note 10_YEAR, -1.31% yield, which falls as prices rise, was down half a basis point on the day at 2.583%. The benchmark yield has mostly been rising over the past two weeks as investors place bets on a more hawkish Fed. However, the yield pared that rise in recent sessions as market participants rethink expectations about the Fed’s tone.
“For most real money investors, the takeaway will remain the Fed is going to do something eventually but with little clarity about when and how much,” said Jim Vogel, a strategist at FTN Financial, in a research note.
The 30-year bond 30_YEAR, -1.01% yield fell half a basis point to 3.351% while the 5-year note 5_YEAR, -0.96% yield rose half a basis point to 1.779%.
