Treasury yields oscillated after the Federal Reserve held off on a rate hike but projected two more were ahead later this year.
The 2-year Treasury yield rose by less than 1 basis point at 4.705%. It reached a session high of 4.777% immediately after the announcement to reach its highest level since Mar. 20, before paring back some of its gains. Meanwhile, the 10-year Treasury yield fell by more than 4 basis points at 3.8%.
Yields and prices have an inverted relationship and one basis point equals 0.01%.
The Fed said that it would measure the impacts from its previous 10 rate increases before its next meeting. The central bank began its rate hiking campaign in March 2022.
“Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy,” the central bank said in its post-meeting statement. The Fed next meets July 25-26.
Markets are estimating almost 60% probability of a rate hike at the July meeting, according to the CME FedWatch Tool.
