30-year Treasury bond yield slumps after Fed raises rates

Long-dated Treasury yields fell after the Federal Reserve raised interest rates by a quarter percentage point to a range between 2.25% and 2.5%, as expected. The 10-year Treasury note yield TMUBMUSD10Y, -0.92% was down by 1.5 basis points to 2.808%. The 2-year note yield TMUBMUSD02Y, +0.15% rose by 1.2 basis points to 2.664%, while the 30-year bond yield TMUBMUSD30Y, -1.85% saw the most decisive move, slipping 4.8 basis points to 3.029%. The Fed’s policy statement said "some further gradual increases" to interest rates was consistent with sustainable growth and that the risks to the economic outlook were "roughly balanced." The Federal Open Market Committee’s dot plot showed members of the rate-setting body on average expected two rate increases in 2019, from a previous three.

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