US Treasury yields saw its biggest one-day drop since May 30, with the yield on 10-year Treasury notes down 7.8 basis points to 3.720%, following the latest policy statement from the Federal Reserve. Despite unchanged weekly initial jobless claims in the US, which followed expectations at 262,000, the yield curve measuring the gap between yields on two- and 10-year Treasury notes remained negative, indicating reticence on the perceived strength of the US economy. Meanwhile, the European Central Bank increased borrowing costs for the first time in 22 years, while leaving the door open for further hikes.
