Treasury yields shot higher on Wednesday after the Federal Reserve raised its benchmark interest rate for the second time in a decade. In addition to raising interest rates, which was widely anticipated by financial markets, the Fed signaled that it expects to raise interest rates next year more swiftly than previously thought. The median projection on the Fed's "dot plot" showed members of the Fed's rate-setting committee expect three rate hikes next year, though the expected pace for 2018 and 2019 was largely unchanged. The two-year Treasury yield touched 1.235%, its highest level since August 2009. The 10-year traded as high as 2.495, while the 30-year yield edged lower to 3.118%. Short-term Treasury yields are typically the most sensitive to rate-hike expectations.
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