TREASURIES-US yields pare increase as Fed holds rates with two dissents

BY Reuters | ECONOMIC | 07/30/25 02:18 PM EDT

NEW YORK, July 30 (Reuters) - U.S. Treasury yields pared their increase on Wednesday after the Federal Reserve decided to hold interest rates steady at the end of a two-day policy meeting, but saw two dissenting votes by governors, the most in more than three decades.

In standing pat for a fifth straight policy meeting, the Fed cited low unemployment and solid labor market conditions. But it noted that economic growth "moderated in the first half of the year," boosting the case to lower rates at a future meeting should that trend continue.

U.S. 10-year yields were last up 1.6 basis points at 4.344% , while the two-year yield, which reflects interest rate expectations, was flat at 3.873%.

(Reporting by Gertrude Chavez-Dreyfuss)

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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