The iShares Long Term Bond Fund (TLT) is seeing 3 times its normal trading volume, as bonds get hit on the heels of today’s FOMC meeting. The benchmark ten-year Treasury bond is down 6/32nd and, after hitting a low of 3.96 percent just as the FOMC statement was released, its yield is back up to 4 percent. As expected, the FOMC left rates unchanged. Dallas Fed Prez Fisher was once again the lone dissenter and favored raising the Fed Funds rate target. The FOMC again mentioned “tight credit conditions, the ongoing housing contraction, and elevated energy prices”. It “expects inflation to moderate…but outlook remains highly uncertain”. The TLT, which holds a basket of longer-term Treasurys, is down 52 cents to $90.81 and the September 90 puts are the most actives. 42,000 contracts have traded, as some investors might be seeking out some protection from the risk of falling bond prices over the next few weeks.