U.S. sovereign bond prices remained lower Wednesday afternoon, but showed slight gains after the Federal Reserve opted not to hike interest rates at its January meeting and gave no indication that it was changing course on its rate-hiking path ahead.
The 10-year Treasury yield was just above 2 percent after the news, while the 30-year yield was at 2.796 percent. The 2-year and 5-year note yields both edged in and out of the red after the news.
"Short term rates are going to stay low," Bill Gross, lead portfolio manager at Janus Global Unconstrained Bond Fund, told CNBC. "The fact is they're low already and that 2-year Treasury is, not historically low, but certainly significantly low."
At 1:55 p.m., just before the Fed news, the U.S. 10-year Treasury yield, which moves inversely to the bond's price, climbed to 2.041 percent. The longer-dated 30-year yield was also higher at 2.819 percent.
The Fed and the markets have been at odds over the central bank's interest rate forecasts. When it raised rates for the first time in nine years in December, the forecasts of Fed officials pointed to four additional hikes for this year. As of now, the market is pricing in one and each piece of disappointing economic news has reinforced that view.