10-year Treasury yields rise after Fed's pledge to support the economy

  • The Fed said it would continue to buy at least $120 billion of bonds each month "until substantial further progress has been made toward the Committee's maximum employment and price stability goals."
  • Congressional leaders closed in on $900 billion of coronavirus relief funding on Wednesday.

10-year U.S. Treasury yields climbed on Thursday morning, after the Federal Reserve promised to continue buying bonds to support the economy.

The yield on the benchmark 10-year Treasury note rose to 0.923% at 4 a.m. ET, while the yield on the 30-year Treasury bond fell to 1.661%. Yields move inversely to prices.

Treasurys

The Treasury yield movements came after the Fed said it would continue to buy at least $120 billion of bonds each month "until substantial further progress has been made toward the Committee's maximum employment and price stability goals," the post-meeting statement said on Wednesday.

The Fed, however, did not say it would extend the duration of those purchases.

The U.S. central bank also updated its economic outlook, forecasting gross domestic product (GDP) to fall by 2.4% in 2020, instead of the 3.7% fall it predicted in September. It now expected GDP to grow by 4.2% in 2021, rather than its previous prediction of 4%.

A U.S. economic stimulus package also remained in focus, as congressional leaders closed in on $900 billion of coronavirus relief funding on Wednesday.

November data for building permits and housing starts is expected to be released at 9:30 a.m. ET on Thursday, along with jobless claims figures and an update from the Philadelphia Fed manufacturing index.

Auctions will be held Thursday for $30 billion of 4-week bills and $35 billion of 8-week bills.

CNBC's Jeff Cox and Jacob Pramuk contributed to this article.

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