The bond market, which has been in a bear market since the recession, has started to rebound, even as markets around the world continue to be rocked by fears about the economic impact of the U.S. presidential election.
The yield on 10-year Treasuries, which measure inflation-adjusted prices over a decade, jumped to its highest level since March 2012 as the Dow Jones Industrial Average climbed 538 points.
The S&P 500 and Nasdaq also rose.
The benchmark 10-month Treasury note fell to 1.65% from 1.6%.
The yield rose to 2.2% from 2.3%.
On Tuesday, the S&s yield rose 0.8 percentage point to 2%, and the 10- and 20-year Treasury notes rose 0,3 percentage points to 2,800 and 2,700 pence, respectively.
On Wednesday, the yields on U..
S.-dollar-denominated bonds rose to 1-1.6% from a previous 2.4% and 2.1% from an earlier 1.8% rise.
The Dow Jones industrial average rose 2.7% to 20,958.21 and the Nasdaq composite rose 2%.
In a statement, the Federal Reserve said that it would begin cutting its benchmark interest rate from the current range of 0.25% to 0.35% in January.
That would begin a two-month period when it would keep rates near zero and begin to slowly raise them as the economy improves.
On Friday, the Treasury Department said that the economy added 2.8 million jobs last month, up from a revised reading of 1.9 million jobs.
The unemployment rate dropped to 4.3%, the lowest level since December 2008, from 4.5% in November.