Treasury Curve Steepens as Fed Holds Rates, 30-Year Yield Hits 2007 High, Dissenters Push for Hike
The U.S. Treasury yield curve steepened after the Federal Reserve left rates unchanged, pushing the 30-year yield to its highest since 2007. Three FOMC members dissented in favor of a rate hike, while the dollar weakened for a fifth consecutive day.
The Federal Reserve kept its benchmark interest rate steady, but a notable three officials dissented, preferring a quarter-point hike. That split underscored lingering hawkishness within the committee.
Long-end Treasuries sold off sharply, driving the 30-year yield to levels not seen since before the financial crisis. The resulting steepening of the yield curve suggests markets are pricing in either higher inflation expectations or greater term premium.
Meanwhile, the U.S. dollar edged lower for a fifth straight session, extending its losing streak despite the hawkish undercurrent. The DXY index continued to retreat from recent highs, reflecting perhaps profit-taking or shifting global sentiment.
Source: First Squawk