TREASURIES -US yields pare rise as Fed sticks to one rate cut in 2026

U.S. Treasury yields pared their increase on Wednesday after the Federal Reserve kept interest rates unchanged, as widely expected, and kept its forecast for a single rate reduction in 2026.

U.S. two-year yields, which reflect interest rate expectations, were last up 2.8 basis points (bps) at 3.701% US2YT=RR. It was at 3.713% just before.

New projections from U.S. central bank policymakers showed that the Fed's benchmark overnight interest rate would fall by just a quarter of a percentage point by the end of this year, with no hint of the timing of such a move. That view was unchanged from previous projections.