U.S. Treasury yields plummeted on Wednesday after the Federal Reserve announced a cut to its benchmark interest rate. The yield on the 10-year Treasury note fell sharply, as investors reacted to the Fed’s decision and its implications for future economic growth.

The Fed’s rate cut, the first in over a decade, was intended to provide a buffer against potential economic headwinds, including slowing global growth and trade tensions. However, the move also signaled concerns about the strength of the U.S. economy, prompting investors to seek the safety of government bonds.

The 30-year Treasury bond yield also experienced a notable decrease, reflecting similar investor sentiment. The yield curve, which measures the difference between long-term and short-term Treasury yields, flattened further, raising concerns about a potential economic recession.

Analysts suggest that the market’s reaction indicates uncertainty about the effectiveness of the rate cut in stimulating economic activity. Some investors believe that further rate cuts may be necessary to sustain growth, while others worry that the Fed’s actions may be insufficient to address underlying economic challenges.

The decline in Treasury yields is expected to have a wide-ranging impact on financial markets, including lower borrowing costs for consumers and businesses. However, it also poses challenges for investors seeking higher returns in a low-interest-rate environment.