The world is now waiting for the Federal Reserve announcement at 215PM New York time. Prices of benchmark Treasury paper have barely budged. MBS spreads are unchanged in 30 year space and are a little tighter in 15 year space. There has actually been some cash market buying in corporates and the market maintains a firm tone. The tranches of the mega B of A deal from yesterday are each tighter by about 5 basis points on the bid side.
In my very brief GDP discussion earlier I failed to mention the extent of the swing in inventory which contributed to the positive GDP report. Inventories contributed 0.8 percent to GDP after subtracting nearly 1.8 percent in the prior quarter. That is a swing of 2.6 percent and is not likely to be repeated.