Bond Markets Flat Overnight, Weaker Since 8am
Treasuries barely budged in the overnight session with 10yr yields holding inside a 0.02% range for the entirety. European bond markets weakened all morning and by the time US traders sat down for the day, Treasuries began to follow.
In the first 40 minutes, Treasuries erased more than half of yesterday's gains and MBS came quite close. Both were able to put in a bounce in conjunction with European markets with Fannie 4.0s now down only 2 ticks on the day and 10yr yields up less than 1bp.
There is no significant economic data on tap today and the 2pm FOMC Meeting is in focus. As noted in The Day Ahead, the only mystery surrounding today's announcement is the verbiage the Fed will choose to convey it's qualitative guidance (i.e. moving away from unemployment rate threshold and instead focusing on describing "good vs bad labor markets" qualitatively).