In the eyes of bond traders, the Federal Reserve didn’t concede much ground in its latest decision.
Measures of the yield curve broadly flattened after Wednesday’s Fed meeting. Shorter-dated securities underperformed after officials tightened by a quarter-point and left their median projections for the path of rates unchanged for 2017 and 2018. The result surprised some investors, after a batch of disappointing data released in the morning convinced them to wager that policy makers would ratchet back forecasts for further normalization.
