Bonds Recover

Treasuries recovered on Wednesday after the FOMC meeting in the afternoon where they found core inflation was likely to stay low and stable

S&P MARKETSCOPE: Treasurys, which faltered a bit on the release of Feb. 1 and 2 FOMC meeting minutes, were heading higher as members found core inflation likely to stay low and stable. The market was showing little reaction to the speech by Atlanta Fed President Guynn saying the Fed has a "ways to go in recalibrating monetary policy". Guynn said policy remains accommodative, looks for growth in the 3% to 4% area, with CPI in a 2.5% to 3% range. Guynn cautioned against reading too much into isolated price increases and suggested competitive forces remain at work keeping consumer prices low. The 10-year Treasury yield was at the 4.264% level.

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