Most Treasury Yields Fall After Fed Raises Rates and Projections
- Short-maturity yields ended higher, but well off peak levels
- Yield-curve inversions deepened as long-dated rates fell most
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Treasury yields failed to sustain the initial surge sparked by the Federal Reserve’s latest interest-rate hike, with rates other than the shortest maturities winding up lower in anticipation of an economic slowdown.
The two- and three-year tenors initially led Treasury yields higher after the US central bank lifted its policy rate by three-quarters of a percentage point -- the expected outcome and the third consecutive move of that size -- and published new forecasts indicating a higher terminal rate than previously anticipated.