10-year Treasury yield falls lower after topping 2.9% on the Fed’s rate hike

  • As widely expected by the markets, the Fed raised interest rates by 25 basis points on Wednesday and upgraded its economic outlook.
  • Overseas, stocks in Europe were under slight pressure, while Asia saw a mixed session Thursday.

U.S. government debt prices were sharply higher on Thursday.

The yield on the benchmark 10-year Treasury note was lower at around 2.846 percent at 6:00 a.m. ET, while the yield on the 30-year Treasury bond was lower at 3.073 percent. Bond yields move inversely to prices.

On Wednesday, the U.S. Federal Reserve raised interest rates by 25 basis points as expected, and upgraded its economic outlook, saying that the economy and job gains had been strong in recent months.

Market watchers expect the central bank to hike three times in 2018, while the Fed announced that it was increasing its rate-hike forecast for 2019.

Following the announcement, Treasury yields rose with the benchmark 10-year yield briefly topping 2.9 percent, before paring some gains.

Switching to Thursday, the Bank of England holds its latest monetary policy meeting. The British institution isn’t expected to hike rates or make any alterations to its asset purchase program at this meeting.

On the economic front, jobless claims are due out at 8:30 a.m. ET, followed by FHFA House Price Index at 9 a.m. ET. At 9:45 a.m. ET, a flash U.S. Composite purchasing managers’ index (PMI) is scheduled to be released, followed by the Kansas City Fed manufacturing survey, set to come out at 11 a.m. ET.

Not a Scientific Survey. Results may not total 100% due to rounding.

Looking to the auctions space, the U.S. Treasury is due to auction $11 billion in nine-year and 10 -month Treasury inflation protected securities (TIPS). The size of three bills auctions, three notes auctions and one floating rate notes (FRNs) auction will also be announced.

Overseas, stocks in Europe were under slight pressure, while Asia saw a mixed session Thursday.

—CNBC’s Jeff Cox contributed to this report

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