NEW YORK: Yields on US Treasuries rose on Wednesday after the Federal Reserve increased its benchmark rate by 0.25 percent, its first hike in nearly a decade.
While the rate move was almost fully priced in, with traders seeing an 81 percent chance of an increase leading into the meeting, according to the CME Group's FedWatch program, investors paid close attention to the words used by the central bank to communicate the pace of future hikes.
"The dollar is up a little bit, yields are up a little but not substantially, so the market got what it expected," said Kathy Jones, fixed income strategist at Charles Schwab in New York.
The increase, which is the first since June 2009, is expected by analysts to flatten the yield curve in the coming months.
US benchmark 10-year Treasury notes were last down 6/32 in price to yield 2.288 percent, up from 2.266 percent late on Tuesday.
The US 30-year bond was last down 4/32 in price to yield 2.99 percent, up from 2.991 percent late Tuesday.
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