FX.co ★ Treasury Yields Hit New 4-Week High After Fed

The yield on the US 10-year Treasury note rose to 4.41% on Wednesday, its highest level in about a month, as investors digested the latest FOMC decision. As widely expected, the Fed left the federal funds rate unchanged, but the vote was not unanimous: three members dissented over language indicating the central bank could eventually resume rate cuts. Markets interpreted this as a more hawkish signal, and traders are now assigning roughly a one-in-three probability to a rate hike by April 2027. Short-term Treasuries, which are more sensitive to interest rate expectations, saw an even steeper move, with the 2-year yield climbing above 3.93%.