U.S. Treasury yields fell on Wednesday as equity markets came under pressure and the Federal Reserve announced that it would keep its benchmark interest rate steady.
The yield on the benchmark 10-year Treasury note dipped to 1.013%, while the yield on the 30-year Treasury bond fell to 1.773%. Yields move inversely to prices.
Treasurys
U.S. government bond yields were modestly lower early in the trading session, ahead of the Fed's decision and Fed Chair Jerome Powell's press conference.
Yields were little changed after the Federal Reserve announced at 2 p.m. that it was holding its benchmark interest rate and asset purchase plans steady. The central bank said in its policy statement that the pace of the economic recovery has moderated in recent months.
Powell said during the press conference that the central bank was not close to tapering its monthly asset purchases.
"The whole focus on exit is premature if I may say. We're focused on finishing the job we're doing, which is supporting the economy, giving the economy the support it needs," he said.
The decline for bond yields came as the broad U.S. equity markets came under pressure, with the S&P 500 falling more than 2%.
The rollout of coronavirus vaccines helped lift the International Monetary Fund's global economic outlook, which was released Tuesday. The IMF is now forecasting the global economy to grow by 5.5% in 2021, 0.3% higher than what it predicted in October.
Auctions were held on Wednesday for $25 billion of 105-day bills, $30 billion of 154-day bills and $28 billion of 2-year floating-rate notes.
— CNBC's Thomas Franck contributed to this report.