The Federal Reserve unanimously raised its policy rate by 25 basis points to 3.75%-4.00%, widening the gap with South Korea’s 3.00% benchmark to 1 percentage point. The 10-year U.S. Treasury yield subsequently fell from 5% to 4.93% as bond demand recovered, with yields also declining in South Korea, Germany and Japan, although analysts warned that persistent U.S. deficits and record Treasury issuance could keep upward pressure on yields. The decision weakened the won to 1,382.2 per dollar, pressured Korean bonds and equities, and lifted the upper end of five-year hybrid mortgage rates at the five largest commercial banks to 7.29%. U.S. variable-rate borrowers also faced higher costs, including about $1.38 more monthly interest for a cardholder with the average $6,600 balance and as much as $1.15 billion in additional annual HELOC repayment costs.