Treasury yields, dollar gain after Fed’s historic policy shift

Treasury yields, dollar gain after Fed’s historic policy shift

Longer-dated Treasury yields and the dollar rose in Asia on Friday after the US Federal Reserve shifted its policy framework to place more emphasis on boosting economic growth and less on worries about letting inflation run too high.

The 10-year US Treasury yield rose to 0.7870 per cent, the highest since June 10, which caused the yield curve to steepen, reflecting the Fed's tolerance for higher inflation.

The dollar hit a two-week high against the yen but held steady against most other major currencies. Gold prices erased early gains and edged higher.

MSCI's broadest index of Asia-Pacific shares outside Japan bounced between gains and losses in choppy trade. US stock futures rose 0.25 per cent.Australian stocks fell 0.85 per cent. Shares