Treasury Yields Fall After Fed

2026-09-17 11:09 By Joana Taborda 1 min. read

The yield on the US 10-year Treasury note fell to 4.95% on Thursday, below the 2007 high of 5.04% reached earlier in the week.

The decline came after the Fed raised interest rates and Chair Warsh reaffirmed the central bank’s commitment to tackling inflation, reassuring investors about its policy credibility and determination to contain price pressures.

The central bank raised the target range for the federal funds rate by 25bps, marking its first rate hike since July 2023, and signalled at least one further increase in borrowing costs this year.

While the move had been fully priced in ahead of the decision, investors had been concerned that a surprise decision to hold rates could trigger a surge in market volatility.

Meanwhile, the yield on the 2-year Treasury note, which is more sensitive to near-term Federal Reserve policy, edged down to 4.73%, while the yield on 30-year Treasury bonds, which are more sensitive to longer-term inflation and geopolitical risks, fell to 5.34%.



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Treasury Yields Fall After Fed
The yield on the US 10-year Treasury note fell to 4.95% on Thursday, below the 2007 high of 5.04% reached earlier in the week. The decline came after the Fed raised interest rates and Chair Warsh reaffirmed the central bank’s commitment to tackling inflation, reassuring investors about its policy credibility and determination to contain price pressures. The central bank raised the target range for the federal funds rate by 25bps, marking its first rate hike since July 2023, and signalled at least one further increase in borrowing costs this year. While the move had been fully priced in ahead of the decision, investors had been concerned that a surprise decision to hold rates could trigger a surge in market volatility. Meanwhile, the yield on the 2-year Treasury note, which is more sensitive to near-term Federal Reserve policy, edged down to 4.73%, while the yield on 30-year Treasury bonds, which are more sensitive to longer-term inflation and geopolitical risks, fell to 5.34%.
2026-09-17
US 10-Year Yield Holds Steady at 5%
The yield on the 10-year US Treasury note traded around 5% on Thursday, staying close to its highest level since July 2007 after the Federal Reserve raised interest rates for the first time in three years and signaled further tightening this year to contain inflation. The FOMC unanimously lifted the fed funds rate by 25 basis points to 3.75%-4%, as expected. Fed Chair Kevin Warsh also said inflation remains elevated, while data released last week showed core US inflation increased more than anticipated in August. In addition to rising inflation driven by surging energy prices, Warsh noted that Treasuries have also faced pressure as they compete for investor capital with a growing supply of corporate debt. Meanwhile, President Donald called for rates to be quickly reduced to 1% or below in a social media post, although he stopped short of criticizing Warsh.
2026-09-17
US 10-Year Yield Rises to 19-Year High
The yield on the 10-year US Treasury note rose to above 5.01% on Wednesday, the highest in 19 years, after the Federal Reserve raised interest rates by 25bps. The move was largely expected by financial markets after recent data pointed to high inflation, low unemployment, and strong consumer spending. Projections by FOMC members pointed to one or two additional rate hikes by next year, consistent with upward revisions to forecasts on inflation and downward revisions to unemployment. Besides higher inflation due to soaring energy prices, the Chairman Warsh also acknowledged that Treasuries have been pressured by competing for capital allocation with soaring corporate debt supply. Still, longer-term maturities rose less than the shorter part of the curve as confidence that the Fed unanimously raised rates to fight inflation restored some credibility for the central bank, after Chairman Warsh had earlier downplayed the urgency of a higher funds rate to reign in price growth.
2026-09-16