Dollar Rises, Yields Jump After Fed Decision

The Federal Reserve's decision has sparked a market reaction, with the US dollar rising across the board and front-end Treasury yields jumping sharply.

The dollar strengthened against all major currencies, with the EURUSD falling to 1.1502 from 1.1536, a decline of 34 pips.

The largest yield increases were concentrated at the shorter end of the curve, with the 2-year yield rising to 4.6571% from 4.606%, an increase of 5.1 basis points.

The combination of rising short-term yields and a slightly lower 30-year yield resulted in a flatter yield curve, indicating that markets are pricing a higher near-term policy path without necessarily increasing its longer-term growth and inflation expectations.