Beat Down: Bonds are sliding further as stocks try to pull back from worse levels and the market thinned ahead of the FOMC, with the 30-yr yield looking for near 4.36%. Treasuries fell apart heading into mid-day with the long bond leading lower with gold going ballistic and as players square-up the past week’s positioning and spread trades are reversed in front of this week’s hefty event risk. The market is looking out to the FOMC statement tomorrow along with the supply announcement for the 3-10-and-30-yr auction to hit next week. Supply in general is expected to remain at record levels and while the majority of recent offerings have gone well enough, but players wonder when the market will say “enough,” especially regarding longer dated issues at historic low rates. The market is also seeing some going sidelined as even as the FOMC will likely produce little in the way of statement changes (aside from numbers and technical factors regarding their buyback operations). The market is looking to swallow a solid run of corporate offerings with issuance expected to ramp up as operations try to lead the Fed. The market is weighing the run on gold as it reaches for new records as helping fan concerns over inflation although some call it a largely technical run. The curve was swung well steeper, to levels last seen early September with the 2-10-yr yield spread running 254.9. The dollar was making a strong showing early but was flipped back on the gold move to back off to 76.40 from 76.80 with the euro pushing back from a month low, taking aim at 1.47, but failing to take it out. The yen was giving up near 90.60 to the buck, but has come back to stall near 90.30 while seeing a brief improvement on the euro.