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TREASURIES-US yields rise further after Fed cuts rates, says will end QT

BY Reuters | ECONOMIC | 10/29/25 02:16 PM EDT

NEW YORK, Oct 29 (Reuters) - U.S. Treasury yields extended their rise on Wednesday after the Federal Reserve cut interest rates by a quarter of a pecentage point and announced it will restart limited purchases of Treasury securities after money markets showed signs liquidity is becoming scarce.

The Fed lowered the overnight benchmark rate to a target range of 3.75%-4.00%, as widely expected, the second time the U.S. central bank eased this year.

Following the Fed rate decision, the benchmark 10-year Treasury yield was up 3.5 basis points (bps) at 4.018% , while the two-year yield, which reflects interest rate expectations, rose 3 bps to 3.524. (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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