The US 10-year Treasury yield fell to 4.99% on Thursday, below the 5.04% high reached earlier in the week that was identified as a 2007 peak. The move followed the Federal Reserve’s 25-basis-point increase in its federal funds rate target range, its first hike since July 2023, alongside Chair Warsh’s reaffirmation of the central bank’s commitment to fighting inflation. The Fed signalled at least one more increase in borrowing costs this year. Although the decision was fully priced in, investors had feared that holding rates would cause a sharp rise in market volatility. The 2-year yield slipped to 4.73%, while the 30-year yield fell to 5.34%.