LONDON, Sept 22 Germany's benchmark 10-year Bund
yield fell to two-week lows on Thursday, moving decisively back
into negative territory after the U.S. Federal Reserve lowered
its projection for future interest rate hikes.
At its two-day meeting which ended on Wednesday, the U.S.
central bank held its target range on short-term rates unchanged
at 0.25 percent to 0.50 percent, leaving the door open for a
possible rate increase in December.
But policymakers cut the number of rate increases they
expect this year to one from two previously, according to the
median projection of forecasts released with the statement.
U.S. Treasury yields fell following the Fed meeting, setting
the tone for European trade.
German 10-year bond yields fell almost 5 basis points to
minus 0.040 percent, their lowest level in almost
two weeks. Other euro zone bond yields were 4-5 basis points
lower on the day.
(Reporting by Dhara Ranasinghe; Editing by Hugh Lawson)