10-year Treasury gives 1.6 bps to 1.638%
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The jump back above 1.60% yesterday ended as the key story in the market and we see that bond sellers are putting a bit of pressure to start European trading.
10-year yields have risen to a high of 1.641% and hold there to start the session as the market goes to the FOMC meeting later today.
Nothing has really changed in terms of key developments in the past few weeks, so this could be a little light on the Fed, although there is a strong consensus that Powell & co. will offer very little for retailers to work with this time around.
I guess price action after the Fed will be the more interesting thing. If 10-year yields can stay within its previous range of 1.60% to 1.75%, that could set the stage for the next stage higher if economic data holds.
That will pay a lot of attention to the PCE inflation data on Friday as such.
But go back below 1.60%, then it almost goes back to the drawing board, as the narrative of reflection continues to pause a bit in the Treasures space.