Treasuries Fall Sharply After Fed Holds Rates; 10-Year Yield Jumps to 5.05%

Treasuries closed firmly lower Wednesday after the Federal Reserve left interest rates unchanged, with selling pressure intensifying late in the session on mounting expectations of a December rate hike. The yield on the benchmark ten-year note, which moves opposite its price, climbed 5.0 basis points to 5.05 percent. The Fed maintained the target range for the federal funds rate at 3.75 to 4.0 percent, citing its dual goals of maximum employment and 2 percent inflation. The decision was not unanimous: Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack dissented, preferring a quarter-point increase. The accompanying statement said inflation remains elevated and that accumulating more information will help determine the appropriate policy stance, declaring the Fed "will deliver price stability." The next policy meeting is scheduled for December 8-9, with CME Group's FedWatch Tool indicating an 82.6 percent chance of a quarter-point hike.