Treasury yields touched their highest levels since June and stocks rose in Asian trading after the US Federal Reserve said it would allow inflation to exceed its 2 per cent target level.
Yields on 10-year US Treasuries, which move inversely to bond prices, rose as much as 0.03 percentage points to 0.7834 per cent early in Asia on Friday in response to the Fed’s policy change.
That brought the 10-year yield to its highest level in more than two months and added to a jump of 0.6 percentage points on Thursday, when Jay Powell, Fed chairman, said the central bank would shift its inflation target to an “average” of 2 per cent.
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