Bonds Slightly Higher Ahead Of Wednesday Afternoon`s Fed Statement, Wednesday, May 09, 2007 9:14:57 AM

Bonds edged higher during the first 45 minutes of Wednesday`s trading, sending treasury yields lower. The early movement kept bonds at the high end of a trading range that has lasted the last three weeks. The lack of major action during the first part of the day came as traders were reluctant to make any moves ahead of the afternoon`s Fed announcement on interest rates.

The 10-year yield opened Wednesday`s trading lower and continued to slide during the first 45 minutes of the day. The early buying came ahead of the Fed statement and as stock futures pointed to a lower open, causing some traders to move their money into the safety of fixed income investments. By 9:15 am Eastern Time, the 10-year yield was down 1 basis point at 4.624%.

At 2:15 pm Eastern Time on Wednesday, the policy-setting arm of the U.S. Federal Reserve will announce its interest rate decision. Economists expect the central bank to leave interest rates unchanged once again, but traders will scrutinize the Fed`s policy statement for signs as to what the next move will be.

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