BLOOMBERG 5 things to stat your day: FED outlook

Federal Reserve Bank of Cleveland President Loretta Mester said the U.S. central bank should start shrinking its $4.5 trillion balance sheet this year if the economy continues to improve. In the shorter term, the bond market does not seem to be reacting to near-term Fed interest rate expectations, with the U.S. 10-year yield at 2.4014 percent as of 5:45 a.m. this morning, 10 basis point lower than where it was trading the day before the Fed hiked rates last week.