US Treasury yields fell on Thursday as investors weighed the US economy’s state a day after the Federal Reserve kept interest rates steady. The 10-year benchmark note yield dropped more than 6 basis points to 4.189%, and the 2-year Treasury yield decreased by over 4 basis points to 3.934%.
The Fed, led by Chair Jerome Powell, maintained its key borrowing rate within a 4.25-4.5% range. Powell hinted that rates might be cut further in 2025 if the economy remains strong and inflation stays under control.
Powell stated that the central bank would keep interest rates elevated if needed, but warned of potential policy easing if labor market weakness or declining inflation emerges. The decision comes as investors are increasingly concerned about a slowing US economy due to President Trump’s trade policies and their impact on inflation expectations.
Source: https://www.cnbc.com/2025/03/20/us-treasury-yields-investors-weigh-the-state-of-the-us-economy-.html