Treasury yields jump after Fed holds rates at 3.5% to 3.75%
Why it matters: The 30-year yield hit its highest level since 2007 as investors questioned whether the Fed will tighten enough to curb inflation.
US Treasury yields diverged and stocks fell Wednesday after the Federal Reserve left its benchmark rate unchanged at 3.5% to 3.75%, while signaling inflation remains its top concern. The policy decision drew three dissents in favor of a quarter-point increase. After the meeting, the two-year Treasury yield fell 3 basis points to 4.244%, suggesting investors see no immediate hike, but the 10-year rose more than 7 basis points to 4.681% and the 30-year climbed to 5.213%, its highest level since 2007. Jeffrey Gundlach of DoubleLine Capital argued the bond market was pressing the Fed to back its inflation rhetoric with action. Fed funds futures still point to a possible rate increase later this year, though expectations for September eased.