U.S. Treasury yields were higher on Thursday as investors digested the Federal Reserve’s decision to cut interest rates by 50 basis points on Wednesday.
At 2:49 a.m. ET, the yield on the 10-year Treasury was up by over one basis point to 3.7018%. The 2-year Treasury yield was last less than one basis point higher to 3.6127%.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
The Federal Reserve on Wednesday delivered a 50 basis point interest rate reduction, bringing the federal funds rate to 4.75%-5%. The size of the cut was in line with market expectations, which had shifted from expecting a 25 basis point cut to a bigger 50 basis point one in recent days.
It’s the first rate cut from the Fed since it began hiking rates in March 2022, marking a shift in its monetary policy approach since then.
“The Committee has gained greater confidence that inflation is moving sustainably toward 2 percent, and judges that…
