Treasury yields move lower after Fed kicks off hiking cycle
· Business · CNBC, LiveMint, Reuters
The U.S. Federal Reserve raised its benchmark interest rate by 25 basis points to a target range of 3.75%-4% on Wednesday, marking its first increase since July 2023. The benchmark 10-year Treasury yield fell more than 4 basis points to 4.957%, while the 30-year yield dropped 4 basis points to 5.308%. The 2-year note slipped over 3 basis points to 4.69% as yields and prices move in opposite directions. Fed Chairman Kevin Warsh said inflation has been 'too high ... for too long' and signaled another rate hike is likely later this year, with 16 of 18 officials expecting further increases. Traders are also watching the working relationship between Fed Chair Kevin Warsh and President Donald Trump, who continues to push for lower interest rates.
Why it matters
U.S. bond market investors can now lock in elevated yields after the Fed's move, with the possibility of another hike at the December meeting, while President Trump's criticism of the Fed adds political pressure on monetary policy decisions.
Read the original report — CNBC
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