Treasuries Rally on Fed While Dollar Slips as Stocks Close Mixed
- Officials reiterate gradual pace of tigthening, hold on rates
- Apple rallies following earnings; Facebook jumps after market
No Surprise: Fed Leaves Rates Unchanged
Treasuries rose, the dollar weakened versus the euro, while U.S. stocks were mixed after the Federal Reserve reiterated its intention to tighten monetary policy gradually, even as the economy shows signs of improvement. Gold rallied.
Yields on 30-year Treasury notes fell seven basis points as two-year yields shed four basis points, as gold futures climbed for a second day. The greenback erased gains against a basket of 10 of its major peers after Fed officials reiterated that “economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate.” The S&P 500 Index slipped as crude’s ongoing plunge weighed on energy stocks. Apple Inc. rose the most since 2014 and Facebook Inc. jumped in extended U.S. trading.