(CNBC.com) Treasury debt prices soared Wednesday, prompting the biggest one-day drop in benchmark yields since 1987, after the Federal Reserve made a surprise announcement that it would buy long-term Treasuries.
In a statement released at the end of its two-day policy meeting, the Fed said it would buy up to $300 billion worth of longer-term U.S. government debt over the next six months and expand purchases of mortgage-related debt to help ease credit market conditions.
Bond prices soared on the news. Benchmark 10-year note prices rose four full points while their yields, which move inversely, had the biggest one-day drop since October 20, 1987, the day after the 1987 stock market crash.
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