Treasuries End Higher

Prices rose and yields fell after the FOMC raised interest rates and indicated it will stay on a measured path

From S&P MarketScope: Long-dated Treasuries rose as the Fed, in its FOMC policy statement, said price pressures remained elevated but core inflation was relatively low. The 10-year note rose 07/32 to 97-29/32 for a yield of 4.39%. The 30-year bond climbed 14/32 to 111-10/32 for a yield of 4.57%.

The FOMC raised its target on the federal funds rate by 25 basis points as expected to 3.50%. It reiterated its plan to remove policy accommodation at a pace likely to be measured.

In economic news, preliminary second-quarter nonfarm productivity climbed 2.2%, above the expected 2.0%, and unit labor costs rose 1.3%, well below the 2.7% consensus forecast. June wholesale inventories and sales rose.