Treasury yields rise after Fed decision
The Federal Reserve left its benchmark interest rate unchanged, but investors are skeptical about the central bank’s commitment to reaching its 2% inflation target.
The benchmark 10-year Treasury yield rose more than 7 basis points to 4.681%, while the 30-year bond yield surged to 5.213% for its highest level since 2007.
The policy-sensitive two-year Treasury yield fell 3 basis points to 4.244%, indicating investors’ doubts about the Fed’s ability to follow through on its rhetoric.
The long end of the yield curve is generally tied to expectations of future inflation and economic growth, suggesting that investors are looking for more concrete action from the Fed to combat inflation.