US Treasury 10-year yields are down by 4 bps today

USGG10YR

The bond market is on the move today as we see some positioning flows ahead of the Fed decision later in the day. Of note, Treasuries are staying bid with 10-year yields now seen down by ~4 bps to 1.763%.

There isn't much to really read into the action here as US futures remain tepid (0.1% weaker) while the dollar is holding firmer in the currencies space. If anything else, it just tells us that markets are feeling a bit mixed on positioning going into the Fed.

I'd argue that the bond move this week is in part a tiny correction to the jump in yields over the past two weeks, as we are going to see a rate cut later today.

As such, I wouldn't read this as the bond market positioning itself for a more dovish Fed to follow but rather just some light positioning flows ahead of the main event announcement.