LONDON: Germany's benchmark 10-year Bund yield fell to two-week lows on Thursday, moving decisively back into negative territory after the U.S. Federal Reserve lowered its projection for future interest rate hikes.
At its two-day meeting which ended on Wednesday, the U.S. central bank held its target range on short-term rates unchanged at 0.25 percent to 0.50 percent, leaving the door open for a possible rate increase in December.
But policymakers cut the number of rate increases they expect this year to one from two previously, according to the median projection of forecasts released with the statement.
U.S. Treasury yields fell following the Fed meeting, setting the tone for European trade.
German 10-year bond yields fell almost 5 basis points to minus 0.040 percent, their lowest level in almost two weeks. Other euro zone bond yields were 4-5 basis points lower on the day.
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