Treasury yields turned higher Wednesday after the Federal Reserve raised rates and forecast three rate hikes in 2017.
The 2-year Treasury yield, the most sensitive to Fed rate hikes, topped 1.20 percent following the announcement to near 1.25 percent, its highest since August 2009. Yields move inversely to price.
The yield on the benchmark 10-year Treasury notes climbed above 2.5 percent, while the yield on the 30-year Treasury bond neared 3.15 percent as of 3:42 p.m., ET.
"The point is there wasn't consensus about what would happen next. Now the consensus is coalescing around the more rapid rise," said Bryce Doty, senior fixed income manager with Sit Investment Associate. "It used to be lower for longer. They're (saying) there could actually be three rate hikes next year."