Treasury Yields Tumble To Lowest Level Since November 2012 After Fed Decision

Treasury yields fell to fresh 3.5-year lows Wednesday after Federal Reserve officials held interest rates steady while noting that economic data over the last six weeks had been mixed. Fed officials said job gains have diminished while market measures of inflation have declined, but economic growth "appears to have picked up." The statement didn't mention the U.K.'s referendum on membership in the European Union slated for June 23. The Fed's decision to keep rates unchanged lifted appetite for Treasurys, pushing prices higher and yields lower. The yield on the 10-year U.S. Treasury note the Treasury market's benchmark, lost 2.4 basis points to 1.586%, its lowest level since November 2012, according to Tradeweb. One basis point is equal to one-hundredth of a percentage point. Treasury yields fall when prices rise and vice versa. The yield on the 30-year bond known as the long bond, fell 1.4 basis point to 2.410%, its lowest level since January 2015, while the two-year Treasury yield lost 3.2 basis points to 0.686%, its lowest level since Feb. 11, the day the stock market reached its nadir.

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