Following the Federal Reserve's decision to maintain interest rates, yields on US Treasuries experienced a notable decline. However, the primary factor behind this decrease may not be directly linked to the Fed's announcement.
The Federal Reserve indicated in its statement that it would be significantly reducing the rate at which it allows its holdings, particularly US Treasuries, to mature without reinvesting them. This adjustment led to a drop in the yield on the 10-year Treasury note, reaching new lows for the day.
Despite the shift in Treasury yields, the US stock market showed a relatively stable response post the Fed's announcement. The Dow Jones Industrial Average saw an increase of 157 points, equivalent to a 0.4% rise. In contrast, the S&P 500 experienced a slight decline of 0.1%, while the Nasdaq Composite remained unchanged.
