The 10-year Treasury yield fell to a 14-month low of 3.903% Wednesday after Dallas Fed President Fisher said the Fed was in the "eighth inning" of its current policy cycle and the ninth inning is in June, according to S&P Marketscope. The surging Treasury market has priced in to a late June FOMC rate hike to bring the funds target to 3.25%.
ISM index and Construction Spending reports showed economic growth and little inflation. U.S. Construction Spending rose 0.5% to a record high level in April after rising 0.6% increase in March, just under expectations of 0.7%. The ISM manufacturing index fell to a 23-month low 51.4 level in May from 53.3 in April, lower than the 52.3 reading expected.