Treasury yields rose as investors digested the Fed's jumbo rate cuts

US Treasury yields were higher on Thursday as investors digested the Federal Reserve's decision to cut interest rates by 50 basis points.

2:49 am ET, yield on 10-year Treasury was up one basis point at 3.7018%. D 2 year treasury The yield was last one basis point lower at 3.6127%.

Yields and prices have an inverse relationship. One basis point equals 0.01%.

The Federal Reserve cut interest rates by 50 basis points on Wednesday, bringing the federal funds rate to 4.75%-5%. The size of the cut was in line with market expectations, which had shifted from expectations of a 25 basis point cut to a larger 50 basis point one in recent days.

It was the first rate cut from the Fed since it began hiking rates in March 2022, marking a shift in its monetary policy approach since then.

“The Committee gained greater confidence that inflation was moving sustainably toward 2 percent and judged that the risks to achieving its employment and inflation targets were fairly balanced,” the Fed's post-meeting statement said.

The central bank's Federal Open Market Committee also indicated through its “dot plot” that it expects another 50 basis points rate cut by the end of 2024. It suggested cutting another full percentage point by the end of 2025, and half a point in 2026.

Elsewhere, the Bank of England is set to announce its latest interest rate decision. It is expected to remain broadly stable after cutting rates for the first time in more than four years in August.

Back in the US, investors will also look for August existing home sales data and the latest weekly initial jobless claims figures.