The 10-year U.S. Treasury yield hit 1.74% on Thursday morning, despite reassurance from the Federal Reserve that it had no plans to hike interest rates anytime soon, nor taper its bond-buying program. The yield on the benchmark 10-year Treasury note had trimmed some gains to 1.722% by 5:15 a.m. ET. The yield on the 30-year Treasury bond was at 2.483%. Yields move inversely to prices. After the Fed’s two-day policy meeting concluded on Wednesday, the central bank said it sees stronger economic growth than previously estimated, forecasting gross domestic product to rise to 6.5% in 2021. This is up from the 4.2% GDP increase forecast in December. The Fed also expected core inflation to hit 2.2% this year, but a long-run expectation of it sticking around 2%.
Source: CNBC – Bonds
