* Wall St falls after Fed raises rates; energy weighs
* U.S. dollar index hits two-week high
* Oil prices fall 3 pct on stronger dollar, renewed glut
* U.S. shorter-dated yields hit multi-year highs
* Gold hits 10-month low
(Updates prices, adds gold lower, oil falls)
By Caroline Valetkevitch
NEW YORK, Dec 14 Yields on shorter-dated
Treasuries hit their highest in more than five years on
Wednesday while the dollar rallied after the U.S. Federal
Reserve raised interest rates as expected and signaled a faster
pace of hikes in 2017.
U.S. stocks fell in choppy action, but were off their lows,
following the statement from the Fed, which raised the target
federal funds rate 25 basis points to between 0.50 percent and
Central bank policymakers also shifted their outlook to one
of slightly faster growth, with President-elect Donald Trump
planning a simultaneous round of tax cuts and increased spending
"It was largely as expected, but it's pretty clear the
market is taking it as a bit more aggressive or hawkish than it
had thought," said Ed Keon, portfolio manager and managing
director at QMA, the multi-asset manager wholly-owned by
Prudential Financial in Newark.
Yields on two-year Treasury notes rose to their
highest since August 2009, while three-year yields
hit their highest since May 2010 and five-year yields
rose to their highest since May 2011.
U.S. two-year notes fell 4/32 in price to yield 1.247
The dollar index, which measures the greenback
against a basket of six major currencies, was last up 1 percent
at 102.11. The index had been trading lower while
bond yields were also mostly lower before the Fed statement.
In the U.S. stock market, the Dow Jones industrial average
fell 41.96 points, or 0.21 percent, to 19,869.25, the S&P
500 lost 7.7 points, or 0.33895 percent, to 2,264.02 and
the Nasdaq Composite dropped 0.33 points, or 0.01
percent, to 5,463.49.
MSCI's all-country world stock index was
down 1.1 percent, adding to earlier losses. The pan-European
STOXX 600 share index ended down 0.5 percent.
Gold turned lower and tapped the lowest in more than 10
months following the Fed statement, while oil prices fell as the
Spot gold was down 0.3 percent at $1,154.62 an ounce.
Brent crude futures settled at $53.90 per barrel,
down $1.82, or 3.27 percent. U.S. crude ended the session
down $1.94, or 3.66 percent at $51.04 per barrel.
For Reuters new Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Editing by Robin Pomeroy and Nick Zieminski)