10-year U.S. bond hits highest in half a year as rate cuts pace

U.S. Treasury yields surged to a six-month high as the U.S. Federal Reserve signaled it would slowly lower rates starting next year.

The 10-year U.S. Treasury yield was 4.51% as of 3:35 p.m. ET, up 0.11 percentage points from the close of the previous day's New York Stock Exchange, according to the electronic trading platform Trade Web.

This is the highest level in six months since early June.

In its revised economic outlook, the Fed put the median interest rate at 3.9 percent at the end of next year, 0.5 percentage points higher than its previous September forecast of 3.4 percent.