Treasuries were trading little changed Tuesday afternoon as the market consolidated ahead of the FOMC policy statement Wednesday afternoon. The consensus estimate is for a 25 bps reduction in the Federal funds rate target to 4.50%. Attention is focused on any comments about credit troubles, deterioration in the housing sector, and future policy course.
At the short end of the curve, the two-year note was unchanged at 99-21/32 for a yield of 4.80%. At the long end, the 10-year note was flat at 102-30/32 for a yield of 4.38%, and the 30-year bond was down 04/32 at 105-08/32 for a yield of 3.67%.
Elsewhere Tuesday, stocks were trading mixed; crude oil futures plunged on profit taking; and gold futures fell.