U.S. government debt prices were higher on Wednesday morning as investors await the Federal Reserve’s monetary policy decision at 2 p.m. ET.
The Fed is not expected to make any significant moves this time around, but investors will be looking for guidance on the unprecedented series of monetary stimulus measures it unleashed to help financial markets over the last six weeks.
Fed Chair Jerome Powell’s virtual press conference following the Federal Open Market Committee (FOMC) meeting will be closely monitored for clues about how long interest rates will stay near zero as the economy seeks to emerge from the coronavirus crisis.
Investors also have an eye on signs of any impending reopening of the economy amid the pandemic, with President Donald Trump promising that the U.S. will “soon” be running 5 million tests a day. The highest daily tests the country has run so far was 314,182 on April 22, according to the Covid Tracking Project.
U.S. first-quarter GDP (gross domestic product) growth figures are set for release at 8:30 a.m. ET.
Auctions will be held Wednesday for $25 billion of 119-day bills, $25 billion of 273-day bills and $30 billion of 103-day bills.