Consolidating Ahead Of FOMC

T-Notes deal unchanged at 132-17 at typing with the contract holding to a narrow 0-03 range overnight. Cash Tsys print unchanged to 1.0bp cheaper across the curve. Participants remain focused on today's FOMC decision, while the release of the monthly Chinese economic activity datapoints will provide some interest in the interim. There was nothing in the way of tangible reaction to the latest moves by Chinese policymakers re: stemming the rally in commodity prices.

• A reminder that T-Notes went out around the middle of a tight range on Tuesday. Benchmark yields across the curve were little changed come Tuesday's close, finishing within 1.0bp of Monday's closing levels. A strong round of 20-Year Tsy supply put a modest bid into the space during the latter rounds of NY dealing, stopping through WI by ~1.7bp, with the cover ratio nudging higher to above average levels and dealer takedown cratering. U.S. data was mixed, headlined by softer than expected retail sales readings and a firmer than expected PPI suite. A large screen lifts of EDN1 headlined on the flow side on Tuesday, with suggestions that the participant is looking for no tweaks in the Fed's IOER settings at the upcoming decision.
• Building permits, housing starts & MBA mortgage apps pad out the domestic docket ahead of FOMC.