The Federal Reserve kept interest rates unchanged in its latest policy decision, shifting market focus squarely to the probability of a rate increase in September.
The decision to stand pat leaves the current policy stance intact while investors digest the implications for the remainder of the year.
US Treasury yields adjusted in the session as traders repriced the odds of a September move.
The 2-year yield, which is highly sensitive to near-term policy expectations, saw volatility as the market digested the Fed's decision.
The 10-year yield also moved, reflecting broader shifts in the term premium and long-term growth expectations.
The pause comes as US stock markets have been trading in a narrow range, with investors adopting a cautious stance ahead of the decision.