The central bank extended its pause on interest-rate hikes , trampling expectations of higher rates and causing investors to lock down higher yields while they still can.
Joseph Wang, a former trader on the Fed's Open Market Trading Desk, says other than that, Powell's speech was uneventful.
While Treasury yields have been dropping all week, Wang believes it's a temporary reaction.
In the past, if Treasury yields suddenly became very high, banks could step in and buy the bonds.
Wang says investors should opt for two-year notes because they're much more sensitive to potential Fed rate cuts, which would increase the price on those bonds.
Persons:
Jerome Powell's, Joseph Wang, Wang, He's, they've, it's
Organizations:
Fed, Treasury
Locations:
Fedguy.com