Treasury yields fall after Fed raises rates

U.S. Treasury yields moved lower on Wednesday after the Federal Reserve raised its overnight lending rate by a quarter percentage point, a move that had been widely expected by markets. The 10year Treasury yield fell more than 3 basis points to 4.957%, while the 30year yield dropped more than 4 basis points to 5.322%. The 2year yield also declined by more than 4 basis points to 4.619%. Yields and bond prices move in opposite directions. The Fed lifted rates for the first time in three years, bringing its policy range to 3.75%4%. In a statement, the central bank said inflation remained elevated and that the move should help return inflation toward its 2% target. The decision came as higher oil prices and recent inflation data continued to pressure longerterm Treasury yields.