Bonds Rise at Close
Bonds and treasury futures improved after the Fed raised rates 25 basis points and left its "measured" change policy unchanged. There was no surprise in the actions. Betting has increased since last week's strong jobs report that the Fed will hike rates at the December meeting. The Fed said the economy was improving despite higher oil prices, and that inflation and longer-term inflation expectations remain well-contained. Bonds were hurt early by lower trade deficit futures, which suggests third-quarter GDP will be revised higher. Higher import prices and increased jobless claims hurt the market also. The 10-year note yield was at 4.22%, down from 4.25% earlier.