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US Treasurys fall after Fed suggests December rate hike

U.S. government debt prices fell on Thursday as investors continued to react to the Federal Reserve's plans to begin unwinding its balance sheet.

The yield on the benchmark 10-year Treasury notes, which moves inversely to price, was higher at around 2.278 percent, while the yield on the 30-year Treasury bond was lower at 2.806 percent.

Symbol
Yield
 
Change
%Change
US 3-MO
---
US 1-YR
---
US 2-YR
---
US 5-YR
---
US 10-YR
---
US 30-YR
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As widely expected, the U.S. central bank said Wednesday it would begin trimming its massive holding of U.S. Treasurys and mortgage-backed securities in October. The Fed also suggested it still expects one more interest rate hike before the end of the year, with investors projecting this would most likely happen in its final meeting of 2017, in mid-December.

The central bank chief said it would take a "material deterioration" in the economy before the Fed backs off the program. Failing that, the Fed would consider lowering interest rates to help the economy out of a slowdown, but would only increase its balance sheet if there were no other alternatives.

CNBC's Jeff Cox contributed to this report.