Giving Up FOMC Press Conference Gains

The Tsy curve has bear steepened in overnight trade Thursday post-FOMC, and ahead of GDP and jobs data.

• The 2-Yr yield is up 0.4bps at 0.1681%, 5-Yr is up 3.5bps at 0.8861%, 10-Yr is up 4.6bps at 1.6557%, and 30-Yr is up 3.8bps at 2.3268%. Jun 10-Yr futures (TY) down 9/32 at 131-26 (L: 131-25.5 / H: 132-05.5).
• TY futures have now reversed gains triggered by Fed Chair Powell's comments at the beginning of Wednesday's press conference Q&A that the FOMC is not yet talking about tapering. Our FOMC review will be out shortly, including sell-side takes on yesterday's decision.
• Equities higher, suggesting a positive risk backdrop weighing on core fixed income globally (Nasdaq outperforming following strong tech earnings results late Weds).
• No reac to Pres Biden's address to Congress late Weds largely, was in line with expectations.
• Busy data calendar: 0830ET sees jobless claims as well as advance Q1 GDP; pending home sales at 1000ET.
• Fed VC Quarles appears at 1100ET (on financial regulation).
• In supply, $80B of 4-/8-week bills auctioned at 1130ET. NY Fed buys ~$1.75B of 20-30Y Tsys.