WASHINGTON (dpa-AFX) - After showing a lack of direction for much of the trading day on Wednesday, treasuries came under pressure following the Federal Reserve's monetary policy announcement.
Bond prices saw considerable volatility late in the day but closed firmly in negative territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.5 basis points to 4.463 percent.
The late-day weakness among treasuries came after the Fed announced its widely expected decision to leave interest rates unchanged for the fourth straight meeting.
The Fed said it decided to maintain the target range for the federal funds rate at 3.50 to 3.75 percent, citing its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run.
In a significantly pared down statement, the Fed said economic activity is expanding at a solid pace despite elevated uncertainty due in part to the conflict in the Middle East.
The statement also noted inflation remains elevated relative to the Fed's 2 percent goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy.
Along with the announcement, Fed officials also provided their latest economic projections, which suggested interest rates could be higher by end of the year.
The median projection suggests officials expect interest rates at 3.8 percent by the end of 2026, hinting at a possible rate hike compared to the rate cut forecast in March.
Officials also raised their forecast for core consumer price inflation at the end of the year to 3.3 percent from 2.7 percent in March.
Earlier in the day, the Commerce Department released a report showing retail sales in the U.S. increased by much more than expected in the month of May.
The Commerce Department said retail sales grew by 0.9 percent in May after rising by a downwardly revised 0.4 percent in April.
Economists had expected retail sales to climb by 0.5 percent, matching the increase originally reported for the previous month.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
