Treasuries were mixed around midday Monday, a day before the
Federal Open Market Committee decides whether to lower the
fed funds target rate for the 11th time this year.
The fed funds rate, the level at which banks lend money to each other overnight, is currently at 2%. Many economists expect the FOMC to lower the rate by 25 basis points to 1.75%.
The two-year note was recently up 6/32 to 99 26/32, yielding 3.10%. The five-year was gaining 3/32 to 95 26/32, with a yield of 4.46%, and the 10-year Treasury was flat at 98 24/32, yielding 5.16%. The 30-year bond, which is being discontinued, was losing 6/32 to 96 26/32, yielding 5.60%.