Treasury Yields Plummet After Dovish Fed Statement

Treasury yields tumbled Wednesday afternoon, after the Federal Reserve took a more dovish tone in its January policy statement than investors had expected. The U.S. central bank said that economic growth slowed since its last meeting in December and that inflation is unlikely to rise rapidly toward its 2% target. The news fueled demand for Treasury bonds, as it was interpreted as an indication that the central bank won't be quick to raise interest rates again. The yield on the 10-year Treasury note fell nearly four basis points after the statement, to 2.010%. The yield on the 2-year Treasury turned negative, lost nearly 3 basis points to 0.853%. The yield on the 30-year bond, known as the long bond, lost around two basis points to 2.803%. Treasury yields fall when prices rise and vice versa.