10-Year Treasury Yield Falls to 4.986% as Fed Delivers First Rate Hike Since 2023
Updated
Updated · CNBC · Sep 17
10-Year Treasury Yield Falls to 4.986% as Fed Delivers First Rate Hike Since 2023
3 articles · Updated · CNBC · Sep 17
Summary
The 10-year Treasury yield slipped 2 basis points to 4.986% early Thursday, with the 30-year at 5.333% and the 2-year at 4.715% after the Fed's long-awaited move.
A 25-basis-point increase lifted the federal funds target range to 3.75%-4%, the first hike since July 2023, after persistent inflation and bond-market pressure had already primed investors for tighter policy.
Kevin Warsh said inflation has been "too high ... for too long," and the Fed's dot plot showed 16 of 18 officials expect at least one more increase this year, with four seeing room for two.
Donald Trump renewed pressure for cheaper borrowing, saying U.S. rates should be 1% or lower and accusing the Fed board of acting politically.
Bob Edwards of Edwards Asset Management said the biggest bond-market moves may already have passed, arguing elevated yields now offer investors a chance to lock in returns before a possible December hike.