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Bond yields moved higher on Wednesday as investors digested the Federal Reserve's decision to hold interest rates steady at its October meeting. The 10-year Treasury note yield — the main benchmark for mortgages, auto loans and credit card debt — was more than 3 basis points higher at 5.026%. The yield on the 2-year Treasury note, which more closely follows short-term Federal Reserve rate decisions, slipped more than 3 basis points to 4.704%. The yield on longer-dated 30-year U.S. Treasury — which tend to move on geopolitical events — was also up by more than 4 basis points to 5.354%. One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another. Fed Chairman Kevin Warsh said the bank remained focused on "price stability" despite the pause and that the employment picture has been "quite positive." Despite the hold for October, expectations for a 25 basis points hike at the central bank's next meeting on Dec. 9 currently stand at 85.7%, according to CME's FedWatch tool. More economic data is due Thursday. Personal consumption expenditures index — the Fed's preferred inflation gauge — as well as the quarterly GDP growth rate and personal income and spending data will offer investors additional insights into the domestic economy and inflation picture. That data will be critical to determining where the Fed may go from here, according to TruStage chief economist Steve Rick. "Holding rates steady doesn't necessarily mean the Fed is finished raising them, especially if inflation doesn't start to cool," he said. "Policymakers will want to see whether these price pressures are temporary or becoming more widespread throughout the economy." — CNBC's Alex Harring contributed reporting.
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