The US government debt saw a significant rally on Wednesday, causing a substantial drop in the policy-sensitive 2-year Treasury yield. This decrease is the largest in over a week and follows the Federal Reserve’s decision to maintain its interest-rate target at 4.25-4.5%. The Fed officials expressed increased uncertainty about the US economic outlook and acknowledged potential risks to their dual mandate.
As expected, the Fed left its main interest-rate target unchanged, but emphasized that it is monitoring the situation closely. This stance has had a positive impact on bond prices, with Wednesday’s closing levels for 10- and 30-year Treasury yields reaching their lowest since March 10.
Source: https://www.marketwatch.com/story/treasury-yields-nudge-lower-ahead-of-fed-decision-d9d0367a