Treasury yields saw subdued moves on Wednesday after the Federal Reserve kept rates steady, as expected, and signaled that gradual rate increases were warranted. The benchmark 10-year Treasury note slipped to 2.350%, compared with 2.354 before the announcement, the yield on the 2-year Treasury , the most sensitive to interest-rate expectations, inched down to 1.604%, from 1.608%, while the 30-year Treasury bond stood at 2.847%, little changed from level prior to the policy announcement. For bond investors, however, the Fed policy update comes against the backdrop of a likely changing of the guard at the central bank’s helm. Fed Gov. Jerome Powell is anticipated to be named the successor to Fed Chairwoman Janet Yellen when her term ends in February, according to multiple reports. Powell is seen as a dovish candidate, who also endorses rolling back financial regulations, all of which may support bond buying, pushing prices, which move inversely to yields, higher.
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