US Treasurys higher after Yellen statement
Yields on long-dated U.S. Treasurys held on to some of the highest rates seen in two weeks on Wednesday, following U.S.Federal Reserve Chair Janet Yellen's assurance that the bank would continue its strategy of reducing asset purchases despite a still unstable labor market.
U.S. stocks surged on Tuesday, cheered by the fact that Yellen did not shock the market. She reiterated that the Fed will continue to trim monetary accommodation in measured steps despite the recent selloff in emerging markets.
In her first public comments as Fed chief, Yellen said it would take a notable change in the U.S. economic outlook - a significant deterioration in the job market, or if inflation does not rise over time - for the Fed to pause its tapering plan.
The yield on 10-year Treasury notes stood a 2.742 percent on Wednesday, after closing at 2.717 on Friday.
On Wednesday, the Treasury will sell the next tranche of this week's supply - $24 billion in 10-year notes.