Bond yields dipped Thursday after the Fed’s midweek monetary policy decision did little to shift the market’s interest rate expectations.

The yield on the U.S. 10-year Treasury was flat on Wednesday as investors awaited the Federal Reserve's first interest rate decision of 2025.

Treasury yields edged lower in early European trading ahead of the Fed’s policy decision, with markets expecting the fed funds target range to remain unchanged.

Yields on U.S. government debt finished slightly higher on Wednesday after the Federal Reserve said inflation remains “somewhat elevated” and left interest rates unchanged.