5/3/2017, 8:38 PM (Source: TeleTrader)
more TeleTrader news

Treasury yields, dollar rise as Fed stays pat on policy

Yields on United States government bonds pushed higher, along with the US dollar, after the Federal Reserve decided to keep interest rates and other elements of its monetary policy unchanged on Wednesday. However, the Federal Open Market Committee said that the slowdown in economic growth during the first quarter is likely "transitory," which encouraged market participants to place their bets on an increase in rates this summer.

The yield on benchmark 10-year Treasuries climbed 3.41 basis points to 2.3144% at 8:27 pm CET, while the yield on two-year bonds, which are more sensitive to policy changes, jumped 3.99 basis points to 1.2979%. However, the yield on 30-year debt fell 1.11 basis points to 2.9578%, as the yield curve flattened. Bond yields move in the opposite direction relative to prices.

Meanwhile, the greenback gained 0.27% against the euro to go for 1.09 for one unit of the joint currency at 8:36 pm CET. The US dollar index, which measures the buck against a basket of currencies, advanced 0.31% to 99.24 at the same time.

Baha Breaking News (BBN) / IB