Markets firmed up their pricing that fed will stand pat throughout 2019 after yesterday’s FOMC statement that adopted the “patience” language. Fed funds futures are pricing in 82.5% chance of federal funds rate staying at current 2.25-2.50% after December meeting. It compares to prior day’s 72.0%. Nevertheless, it’s not that higher than 79.3% a month ago.

Treasury yields responded with 30-year yield rose 0.012 to 3.053. 10-year-year yield dropped -0.017 to 2.695. 5-year yield suffered steep decline and dropped -0.044 to 2.503. 1-year yield dropped -0.008 to 2.606. Yield curve from 1-year to 5-year has indeed inverted more after FOMC.

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