Treasury Yields Slip After Release Of Fed Policy Statement For July Meeting

By MarketWatchMarketsMarketWatch Pulse

Treasury yields edged lower after the Fed released its policy statement at the conclusion of its two-day meeting. The central bank said it would start reducing its $4.5 trillion balance sheet "relatively soon." As expected, the Fed kept interest rates unchanged. The 10-year Treasury yield fell 2.7 basis points to 2.311%. The 2-year Treasury yield slipped 3.2 basis points to 1.371%. While, the yield for the 30-year bond lost 1.6 basis point to 2.904%. The Federal Reserve offered a note of caution on inflation, saying it was "running below 2%" instead of "running somewhat below 2%." Overall, most of the changes made to the statement was largely anticipated. The Federal Reserve has been loathe to make significant tweaks to policy language on meetings without a press conference.

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