Two-year Treasury yield climbs to 4.74% as dollar strengthens after Fed hike
The Federal Reserve raised interest rates for the first time in three years, and short-term yields and the dollar both moved higher
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Chart: Fed target rate, top of the range
The two-year Treasury yield rose 7 basis points to 4.74%. The dollar index gained 0.5%.
The Federal Reserve raised its target range for the federal funds rate by a quarter point on Wednesday, its first increase in three years, taking the range to 3.75%-4%, CNBC reported. Fed Chair Kevin Warsh told reporters after the decision that inflation risks remain persistent, according to CNBC. The 10-year Treasury yield has climbed this week to its highest level in 19 years, CNBC reported.
Elsewhere in markets, oil fell 3.6% to $102.05 a barrel. Gold slipped 0.5% to $4,269.95 an ounce. Bitcoin gained 0.4% to around $76,174.
The combination of higher yields, a stronger dollar and weaker commodities points to standard risk-off positioning rather than a broader shift in market direction. Without a clear comparison to recent trading ranges, the moves read as a contained repricing around the rate decision, not a signal that markets are turning.