U.S. Treasury yields extended their rise on Wednesday after the Federal Reserve cut interest rates by a quarter of a pecentage point and announced it will restart limited purchases of Treasury securities after money markets showed signs liquidity is becoming scarce.
The Fed lowered the overnight benchmark rate to a target range of 3.75%-4.00%, as widely expected, the second time the U.S. central bank eased this year.
Following the Fed rate decision, the benchmark 10-year Treasury yield was up 3.5 basis points (bps) at 4.018% , while the two-year yield, which reflects interest rate expectations, rose 3 bps to 3.524.
