Bond Report: 10-year Treasury yield falls to 15-month low after Fed’s dovish policy update

Treasurys on Wednesday rallied, pushing yields lower, after a more dovish policy update than expected from the Federal Reserve, which downgraded economic growth forecasts and said it would end its balance sheet runoff in September.

The 10-year Treasury note yield TMUBMUSD10Y, -3.12% fell 7.5 basis points to 2.537%, its lowest since Jan. 2018. The 2-year note yield TMUBMUSD02Y, -2.68% retreated 7.7 basis points to 2.392%, a three-month low, while the 30-year bond yield TMUBMUSD30Y, -1.63% slipped 4.7 basis points to 2.979%. Bond prices move inversely to yields.

The rate-setting Federal Open Market Committee repeated its call for a more patient approach and kept its benchmark fed-funds rate unchanged between 2.25% and 2.50%.

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