S&P MARKETSCOPE: Long-dated Treasuries fell as the market prepared for the FOMC meeting tomorrow, where the Fed is expected to raise its target on the federal funds rate by 25 bps to 3.50%. Financial markets braced for the possibility of a more hawkish tone from the Fed following strong economic data recently.
Bond price weakness also reflected a disappointing three-year note auction.
The 10-year note fell 07/32 to 97-22/32 for a yield of 4.41%. The 30-year bond slid 10/32 to 111-20/32 for a yield of 4.59%.
Stocks were lower as bond trading closed. The dollar recovered modestly from early weakness.