10-year Treasury yield jumps as investors bet no recession ahead

U.S. Treasury yields increased following the Federal Reserve’s decision to cut interest rates by 50 basis points on Wednesday. By 1:24 p.m. ET, the 10-year Treasury yield was up over 5 basis points at 3.743%, while the 2-year Treasury yield was slightly higher at 3.606%. The Federal Reserve’s rate reduction was in line with market expectations and marks a shift in monetary policy since 2022. Additionally, weekly jobless claims were lower than expected, indicating a positive trend in the economy. The Bank of England also announced it would keep interest rates steady.