US Treasury Yields Show Divergent Trends Post-Fed Decision

In a surprising turn of events, US long-term Treasury yields experienced a decline on Thursday, contrasting with a rise in short-term yields. This shift followed the Federal Reserve's announcement to maintain current interest rates, leaving investors to ponder the implications for the economy.

Economic Growth and Inflation: A Delicate Balance

Recent data showing a 3% GDP growth has fueled optimism among investors, suggesting the possibility of upcoming Federal Reserve rate cuts. However, the shadow of tariff-induced inflation looms large, introducing a note of caution into the market's outlook.

Yield Movements: A Closer Look

As of 4:41 am ET, the financial markets witnessed the 10-year yield decrease by 2.4 basis points to 4.356%, with the 30-year yield also dropping by 3.6 basis points to 4.877%. On the flip side, shorter-term yields, including the 1-month and 2-month, saw an uptick to 4.37%, and the 1-year yield rose by 2.4 points to 4.17%.