The U.S. Treasury yield curve steepened after the Federal Reserve meeting.

The U.S. Treasury yield curve steepened in afternoon trading in Asia, with short-term bond yields slightly lower and long-term bond yields higher, following the Federal Reserve meeting on Wednesday. As expected, the Fed kept interest rates unchanged at 3.50%-3.75%, and Fed Chairman Jerome Powell struck an optimistic tone on the economy and labor market. SEB's Fed watcher Elisabet Kopelman said in a report, "Unless the labor market weakens further, the Fed seems content to wait for the inflation brought by tariffs to fade before resuming rate cuts." According to Tradeweb data, the two-year U.S. Treasury yield fell slightly by 0.2 basis points to 3.578%, while the 10-year U.S. Treasury yield rose by 1.4 basis points to 4.264%.