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TREASURIES-US yields cuts losses after Fed cuts interest rates

BY Reuters | ECONOMIC | 11/07/24 02:19 PM EST

NEW YORK, Nov 7 (Reuters) - U.S. Treasury yields trimmed losses on Thursday after the Federal Reserve cut interest rates by 25 basis points, as widely expected, amid a cooling labor market, while noting that economic growth remained solid.

"Economic activity has continued to expand at a solid pace," the central bank's rate-setting Federal Open Market Committee said at the end of a two-day policy meeting. The FOMC lowered the benchmark overnight interest rate to the 4.50%-4.75% range. The decision was unanimous.

The benchmark 10-year yield reduced losses after the Fed decision. It was last down 7.9 bps at 4.349%

(Reporting by Gertrude Chavez-Dreyfuss)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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