Fed On-Hold Decision Pushes 30-Year Yield to 5.20%, Weighing on Equities
Deutsche Bank reports that the Federal Reserve’s decision to hold rates, coupled with limited forward guidance from Chair Warsh, steepened the Treasury curve and sent the 30-year yield to 5.20%, pressuring equity markets.
The Federal Reserve kept interest rates unchanged, but the lack of detail from Chair Warsh triggered a sharp steepening of the US Treasury curve. The 30-year bond yield climbed to 5.20%, according to Deutsche Bank.
The move weighed on equities, as higher yields reduce the relative attractiveness of riskier assets. The steepening suggests market uncertainty about the Fed’s future policy path.
Source: FXStreet Forex News