Treasury yields stay elevated as Wall Street calls out Fed's 'inflation credibility shock'

What happened: Long-dated Treasury bond yields stayed elevated on Thursday as investors digested the Fed's decision to hold rates steady, while Wall Street pointed to signs of credibility trouble at the central bank. The 10-year Treasury (^TNX) rose to 4.66% while the 30-year Treasury (^TYX) yield was at 5.21%, its highest level since 2007. "Ironically, we think the need to reestablish credibility increases the probability that the Fed will hike in September, all else equal," they added. The firm predicts that the Fed will hike by 25 basis points each at its remaining three meetings this year. He repeatedly implied that markets are tightening for the Fed, as long-dated bond yields have risen over the past few weeks, raising borrowing costs.