U.S. Treasury yields fell on Wednesday after the Federal Reserve raised interest rates on Wednesday by 25 basis points and suggested this rate hike may be the last.
Wednesday's rate hike marks the Fed's 10th interest rate increase since it began tightening in March 2022.
At 4:19 p.m. ET, the yield on the 10-year Treasury was down by 7.5 basis points to 3.364%. The 2-year Treasury was trading at 3.867% after declining by more than 11 basis points.
Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
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"In determining the extent to which additional policy firming may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments," the Fed said in a statement.
However, traders were focusing on what the Fed didn't say this time in its post-meeting statement. The central bank appeared to soften its language about future rate increases by dropping the line from the March statement that said, "the Committee anticipates that some additional policy firming may be appropriate."
Powell commented to the press after the statement's release that dropping that language was a "meaningful change" and that the central bank's June decision would be driven by incoming data.