Mubasher: US Treasury yields extended their drop on Thursday, after the Federal Reserve policy meeting stoked a rally across bond markets worldwide.

The 10-year Treasury note yield dropped 2.5 basis points (bps) to 2.512%, hitting a fresh 15-month trough, while the 2-year note yield went down 1.2 bps to 2.388%, the lowest since 3 months. The 30-year bond yield inched lower by 1.5 bps to 2.960%.

The US Federal Reserve’s policy decision threw markets into turbulence, as analysts shed lights on the dovish tone struck by the central bank as it scaled back its interest-rate forecasts to zero from two hikes, according to MarketWatch.

In addition, the Fed downgraded its projections for economic growth and inflation rate.

“The Fed dropped so much yesterday afternoon there is still a lot to unpack,” FTN Financial interest-rate strategist Jim Vogel, as quoted by the website.

It is worth noting that bond prices move inversely to its yields.