Treasury Yields Rise Slightly After Fed's Policy Update

Treasury yields rose on Wednesday, but remained a relatively low levels, after the Federal Reserve raised interest rates, as expected, to a range of between 1% and 1.25%, but cut their inflation outlook. The yield for the 10-year Treasury note rose to 2.14% from 2.10% just before the announcement. The 2-year note rose to 1.319% from 1.290%, while the 30-year Treasury was at 2.774%, little changed. The Fed also said they would aim to reduce their $4.5 trillion balance sheet by the end of the year, which theoretically should be bearish for bond prices, pushing yields higher. Ahead of the Fed policy update, yields for U.S. government paper fell dramatically to multimonth lows on signs that inflation was rising to the Fed's 2% target level. Fed Chairwoman Janet Yellen is hosting a news conference to discuss the central bank's monetary-policy strategy.