US bond yields mixed after Fed decision

Prices for longer-term U.S. sovereign bonds gained on Wednesday, after the U.S. Federal Reserve's announced that it left the federal funds rate unchanged.

The 2-year Treasury note last yielded 0.7825 percent, while the longer term 10-year Treasury note and 30-year Treasury bond yielded 1.6599 percent and 2.3907 percent, respectively.

Immediately after the announcement, the yield on the U.S. 2-year Treasury note briefly hit 0.848 percent, while the yield on the 10-year Treasury note briefly hit 1.738 percent.

Treasury yields

Symbol
Yield
 
Change
US 3-MO
---
US 2-YR
---
US 5-YR
---
US 10-YR
---
US 30-YR
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Earlier on Wednesday, the Bank of Japan announced it would abandon its monetary base target in favor of targeting the yield curve for Japanese bonds. It held the deposit rate unchanged at -0.1 percent and said it would maintain its program of bond purchases.

Japanese 10-year sovereign bonds fell following the news.

Japanese bond yields

Symbol
Yield
 
Change
JPN 3-MO
---
JPN 2-YR
---
JPN 3-YR
---
JPN 5-YR
---
JPN 10-YR
---
JPN 15-YR
---
JPN 20-YR
---
JPN 30-YR
---

The Japanese Nikkei 225 closed around 1.9 percent higher subsequently, having traded 0.3 percent up on the day before the decision was announced. Japanese banking shares rose to close sharply higher, boosted by the news of no further rate cuts.

Euro zone sovereign bonds traded mostly higher and European shares also rallied in early trade on the Bank of Japan news.

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—CNBC's Arjun Kharpal contributed to this report.