Treasuries Steepen as Fed Leaves Bond-Buying Plans Unchanged
- Signs of deal on virus-relief pushed gap to widest since 2017
- Fed to keep buying about $80 billion of Treasuries monthly
This article is for subscribers only.
The Treasury market posted a modest selloff Wednesday after the Federal Reserve left its bond-program unchanged, while making clear that it could take action down the road if needed.
The gap between 2- and 10-year yields briefly climbed back toward the day’s widest levels after the release of the Fed’s policy statement, before paring to finish the day just marginally wider. Earlier in the day it reached its steepest since October 2017 amid signs U.S. lawmakers are close to a deal on a virus-relief package.