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Treasury yields climbed on Wednesday after the Federal Reserve kept interest rates unchanged. Investors also digested data showed the U.S. economy grew at a much better than expected pace in the second quarter.
The 10-year Treasury yield rose about 2 basis points at 4.35%. The 2-year yield was up by less than 1 basis point at 3.88%, and the 30-year note yield gained 3 basis points to 4.897%.
The Fed on Wednesday afternoon voted to keep its benchmark interest rate steady, going against President Donald Trump’s demands for rate cuts.
The Federal Open Market Committee, the group that sets the overnight borrowing rate, voted 9-2 to stay on hold and keep the federal funds rate set in a range between 4.25%-4.5%. Traders had expected this decision.
Investors will monitor Fed Chair Jerome Powell’s press conference speech for hints about future monetary policy decisions, especially as Trump has tried to pressure the central bank leader to lower rates in recent months.
Earlier in the day, gross domestic product, a sum of goods and services activity across the sprawling U.S. economy, jumped 3% for the April-through-June period. That release exceeded the Dow Jones estimate for 2.3% and helped reverse a decline of 0.5% for the first quarter.
— Jeff Cox contributed to this report.
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