10-year Treasury yields fall to 2-week lows after Fed stands pat on rates

(Reuters) — Benchmark 10-year Treasury yields fell to two-week lows on Wednesday after the Federal Reserve held interest rates steady but left the door open to a further increase in borrowing costs.

The statement acknowledged the U.S. economy's surprising strength, but also nodded to the tighter financial conditions faced by businesses and households.

Benchmark 10-year note yields (^TNX) were last at 4.801%, after dropping as far as 4.778%, the lowest since Oct. 17.

Two-year yields were at 4.992% having touched 4.983%, the lowest since Oct. 12.

The inversion in the yield curve between two-year and 10-year notes was at minus 20 basis points, after reaching minus 24 basis points, the most inverted since Oct. 25.

(Reporting by Karen Brettell; Editing by Kirsten Donovan)