Authorities bond yields are hovering after the Fed’s promise to purchase bonds

Ten-year US Treasury bond yields rose Thursday morning after the Federal Reserve promised to continue buying bonds to prop up the economy.

The benchmark 10-year Treasury note yield rose to 0.923% at 4 a.m., while the yield on the 30-year Treasury note fell to 1.661%. The returns move inversely to the prices.

The Treasury Department’s rate change came after the Fed announced that it would continue to purchase at least $ 120 billion worth of bonds a month “until substantial further progress was made in meeting the committee’s maximum employment and price stability targets,” it said the statement after Wednesday’s meeting.

However, the Fed did not say it would extend the duration of these purchases.

The US Federal Reserve also updated its economic outlook and forecast a 2.4% decline in gross domestic product (GDP) in 2020 instead of the 3.7% decline forecast in September. GDP was now expected to grow 4.2% in 2021, instead of the previous forecast of 4%.

A US stimulus package also remained in focus as Congressional leaders provided $ 900 billion in funding to aid coronavirus on Wednesday.

November building permits and starts data is expected to be released Thursday at 9:30 a.m. EST, along with unemployment claims figures and an update to the Philadelphia Fed Manufacturing Index.

Auctions will be held Thursday for 4-week invoices valued at $ 30 billion and 8-week invoices valued at $ 35 billion.

– CNBC’s Jeff Cox and Jacob Pramuk contributed to this article.

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