Treasuries fell Wednesday as the FOMC indicated it would not ease monetary policy in the future without cause. The Fed reduced the federal funds rate target by 25 bps as expected to 4.50%, and the discount rate by an equal amount to 5.0%. The two-year note fell 07/32 to 99-14/32 for a yield of 4.91%. The longer maturities fell by larger margins, with the 10-year note down 19/32 at 102-10/32 for a yield of 4.45% and the 30-year bond tumbling 31/32 to 104-07/32 for a yield of 4.73%.
The FOMC statement leaves uncertainty as to the future policy course. Stocks were volatile in the wake of the statement. Elsewhere, crude oil futures rallied sharply. Gold prices also rose.