Bond Yields: Forecasts Show and Rate Increases

bond yields: The Fed announced on Wednesday that it will let a small portion of its 4.5 trillion balance sheet mature without being replaced, starting in October with reductions of 10 billion a month and gradually rising over the next year to 50 billion a month. ; The central bank left its key short-term rate unchanged but hinted at one more hike this year most likely in December, according to The Japan Times. The Fed policymakers' updated economic forecasts show that three more rate increases are expected in 2018. The move reflects a strengthened economy and could mean higher rates on mortgages and other loans over time. The Fed's policymaking committee approved its action on a 9-0 vote after ending its latest meeting. Bond yields rose, reflecting expectations of higher rates. Stocks turned lower after the announcement before finishing mixed. (news.financializer.com). As reported in the news.