(Bloomberg) — US Treasuries pared their gains Wednesday after the Federal Reserve kept interest-rates steady but signaled it’s not in a rush to ease policy.
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The Fed’s policy statement chipped away at the rally from earlier in the day, when yields slid as data showed a cooling in the labor market, tech stocks stumbled and an unexpected quarterly loss at a New York bank reignited concerns about the financial health of regional lenders.
Yields remained down on the day, with the two-year Treasury rate down around 7 basis points at 4.26%, after falling as much as 15 basis points earlier. The 10-year yield — a baseline for mortgages and corporate loans — was down 6 basis points at 3.97%.
The Fed’s statement that it doesn’t expect to cut rates until it’s more confident inflation is moving steadily toward its target chipped away at confidence in financial markets that it would start doing so as soon as…
