Treasurys Fall After Fed Decision
U.S. Treasury prices declined after the Federal Reserve stopped short of delivering a new stimulus program to bolster the economy, instead reiterating its willingness to act if necessary.</br></br>In late-afternoon trade, the 30-year bond sank 31/32 in price to yield 2.594%, while benchmark 10-year notes lost 16/32 to yield 1.522%. The two-year note was down 1/32 to yield 0.235%. Bond yields rise when prices fall.</br></br>The losses came after a brief pop in long-end prices as disappointed investors scurried out of riskier stocks and into safe-haven Treasurys.</br></br>Some investors, particularly within the equity markets, had been hopeful that the central bank would step in given the recent downturn in economic signals. Bond analysts had been a bit more reserved, skeptical that the Fed would act before seeing another two months of employment data. At most, they had believed the Fed would push out its rate guidance to 2015.</br></br>But the policy makers didn't even do that, keeping the Fed's guidance through late 2014.