U.S. Treasury yields climbed on Thursday as markets absorbed the Fed’s 75 basis point rate hike and weighed Fed chair Powell’s remarks on future policy.
As previously expected, the Federal Reserve announced yet another 75 basis point interest rate hike on Wednesday as it continued its battle against persistently high inflation.
U.S. Treasury yields climbed on Thursday as markets absorbed the Federal Reserve's fourth consecutive 75 basis point rate hike and weighed Fed Chair Jerome Powell's remarks on future policy.Earlier in the day, it jumped to briefly top 5.1%, according to Refinitiv data, before returning to the levels it was previously trading at. It was not immediately clear why the sudden move happened.Yields and price move in opposite directions. One basis point equals 0.01%.
In his remarks, Powell said that the terminal rate will go higher than expected, and that any talk of rate hikes pausing would be "premature."
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