Updates after Fed rate announcement
NEW YORK, Jan 29 (Reuters) - U.S. Treasury yields rose on Wednesday after the Federal Reserve kept interest rates steady and gave little insight into when further reductions in borrowing costs may take place.
After several months in which inflation data have largely moved sideways, the U.S. central bank dropped from its latest policy statement language saying inflation "has made progress" towards the Fed's 2% inflation goal, noting only the pace of price increases " remains elevated ."
The 2-year note US2YT=RR yield, which typically moves in step with Fed interest rate expectations, was last up 4.8 basis points on the day at 4.255%.
Benchmark 10-year yields US10YT=RR rose 3.6 basis points to 4.585%.
The yield curve between two-year and 10-year yields US2US10=TWEB was at 33 basis points.