U.S. Treasury yields fell slightly on Thursday as investors digested the Federal Reserve's latest interest rate decision, which saw the central bank pause its rate-hiking campaign, and weighed the policy outlook.
The yield on the 10-year Treasury slipped 7 basis points to 3.724%. The 2-year Treasury was trading at 4.644% after falling by 6.3 basis points.
Yields and prices have an inverted relationship and one basis point equals 0.01%.
Treasurys
Investors assessed what could be next for Fed interest rates and the economy after the central bank left rates unchanged following its latest policy meeting on Tuesday and Wednesday. This comes after 10 consecutive rate increases from the Fed, which aimed to lower inflation and cool the economy.
Earlier this week, May's consumer price index report showed that inflation rose by 4% compared with a year ago, the lowest level reported over the last two years.
"Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy," a statement released by the Fed after it's meeting noted. In a press conference, Fed Chairman Jerome Powell added that the full effect of tightened monetary policy has not yet fully filtered through to the economy.
In guidance issued alongside the rate decision, the Fed also suggested that further hikes could be on the horizon. It showed that officials are anticipating interest rates going as high as 5.6% this year as two further rate hikes are expected.
On Thursday, investors will be looking out for May's retail sales figures and weekly initial jobless claims data.