© Bloomberg. An American flag flies above the U.S. Treasury building in Washington, D.C., U.S., on Thursday, April 16, 2020.
(Bloomberg) — The climbed after Federal Reserve policy makers surprised markets and signaled two quarter-point rate hikes by the end of 2023.
Ten-year yields rose five basis points to 1.54%, extending a rebound from a three-month low of 1.427% touched last week, as it touched the highest since June 8.
The projections of when central-bank officials envision lifting their benchmark overnight rate from near zero also sent the dollar surging. Bond-market gauges of inflation expectations fell.
The Fed’s quarterly projections showed 13 of 18 officials favored at least one rate increase by the end of 2023, versus seven in March. Eleven officials saw at least two hikes by the end of that year. In addition, seven of them saw a move as early as 2022, up from four.
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