FX.co ★ US 10-Year Treasury Yield Holds Gains After Fed Decision

The yield on the US 10-year Treasury note inched up to 4.64% on Wednesday, extending earlier gains after the Federal Reserve left the federal funds rate unchanged, broadly in line with expectations—even as markets had priced in roughly a one-in-three chance of a hike. Notably, three FOMC members dissented in favor of a 25-basis-point increase, keeping the possibility of a rate rise at the September meeting firmly on the table. Futures markets now assign about a 73% probability to such a move. Further out, investors continue to fully price in roughly two additional quarter-point hikes by the middle of next year.