Treasury Yields Surge as Fed Holds Rates Steady Amid Rising Concerns

The US Treasury yields continued to rise on Thursday after the Federal Reserve's decision to hold interest rates steady at a range of 3.5% to 3.75%. The Fed voted 9-3 in favor of this decision, with Chairman Kevin Warsh at the helm.

The 30-year Treasury bond had risen over 9 basis points to 5.236%, reaching its highest level since July 2007 on Wednesday. Meanwhile, the benchmark 10-year Treasury yield soared by more than 8 basis points to 4.7%, and the 2-year Treasury note yield was up 5 basis points to 4.289%.

Deutsche Bank analysts expect the Fed to raise rates by 50 basis points this year, with a 25-basis-point hike in September and December. However, they believe the FOMC is unlikely to be comforted by the market reaction, citing concerns about price stability due to rising long-end rates and falling forward real yields.