10-year Treasury yield rises above 1.50% after Fed holds rates steady, but says inflation due to transitory factors

Yields for government bonds on Wednesday were edging lower after the Federal Reserve held rates in check, as expected, but signaled that red-hot inflation is due to transitory factors. The Fed said that it wouldn't start tapering of its $120 billion a month asset purchases, which have helped to support financial markets since the height of the market's panic last year, until it sees substantial further progress in the improvement in the economy, notably the jobs market. The 10-year Treasury note yield TMUBMUSD10Y, 1.580% was at 1.511, after closing yesterday at 1.498%. The 30-year Treaury bond TMUBMUSD30Y, 2.238% was at 2.192%, while the 2-year Treasury note TMUBMUSD02Y, 0.221% was yielding 0.185%.