WEDNESDAY AFTERNOON UPDATE:
This week’s FOMC meeting has adjourned with an announcement of no change to key short-term interest rates. This was widely expected since the downward trend in inflation stalled this year. There wasn’t much in the statement that came as a surprise to the markets except for news that the Fed was altering their balance sheet plans. They were allowing $60 billion of Treasury securities to mature a month without reinvesting in the market, but are reducing that amount to $25 billion. This reduces the available supply in the market monthly, fueling a nice rally in bonds this afternoon. The press conference with Chairman Powell is in progress, so if there is another surprise it will come from something he says verbally.
24/32
Bonds
30 yr - 4.58%