US Treasury Yields Rise After Fed Announcement
US Treasury note yields rose after Federal Reserve Chairman announced a new inflation strategy, according to the Wall Street Journal.
US treasury yields rose after Mr. Powell announced that the central bank won't raise interest rates to fight inflation. Bond yields rise when prices fall. The yield on the 10-year Treasury rose to 0.719 percent from 0.686 percent from Wednesday.
The 10-year yield fell as Fed Chairman Jerome Powell started speaking, but rebounded once he finished. “The market would’ve liked for the Fed to give a target for when the central bank would act, but Chairman Powell stopped short of that,” said Kevin Giddis, chief fixed income strategist at Raymond James Financial. “[The central bank] could let inflation run well over 2% before we average 2% over time.”
The WSJ Dollar Index also climbed 0.2 percent following the announcement.