TREASURIES-US yields extend rise as Fed stands pat, cites elevated inflation

BY Reuters | ECONOMIC | 01/28/26 02:14 PM EST

NEW YORK, Jan 28 (Reuters) - U.S. Treasury yields extended their gains on ?Wednesday after the ?Federal Reserve left interest ?rates steady, ?as ?widely expected, and noted ?inflation remained ?elevated and the labor market ?continued to ?stabilize.

Following ?the Fed decision, the benchmark 10-year ?yield gained 4.2 basis points to 4.265%, compared with 4.259% just ?before.

U.S. ?two-year yields, which reflect interest ?rate expectations, edged higher by 2 bps to 3.590%. They were at 2.587% before ?the Fed statement.

(Reporting by Gertrude Chavez-Dreyfuss; Editing ?by Chris Reese)

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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