U.S. Treasury yields largely held gains from earlier Wednesday after the Federal Reserve said it would raise short-term interest rates by a half a percentage point, confirming investors’ expectations that the central bank would embark on a more aggressive pace of tightening monetary policy.
As officials had telegraphed, the Fed on Wednesday raised the target for its benchmark federal funds rate to 0.75%-1.0% from 0.25%-0.5%. It also announced plans to shrink its $9 trillion asset portfolio, including Treasurys, starting next month.
