The Big Bond Market Event Wednesday Is at Treasury, Not the Fed

  • Dealers see the US Treasury lifting note and bond sales again
  • Meanwhile, Fed officials have prepped market for another skip
Why the Bond Market Is Watching Treasury Over the Fed
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The Federal Reserve’s policy statement is setting up to be the No. 2 event on Wednesday, with investor focus instead likely to be on the Treasury Department’s new borrowing plan, due hours ahead of the interest-rate decision.

The so-called quarterly refunding announcement will reveal the extent to which the Treasury will ramp up sales of longer-term debt to fund a widening budget deficit. Those securities have been tumbling for weeks, even amid signals from Fed officials they’re “at or near” the end of rate hikes.