FXStreet (Mumbai) - The yields on the US treasuries dropped after the investors noted a tinge of dovishness in the FOMC statement with regards to strong US dollar and falling inflation. The benchmark 10-year treasury yield fell from 2.054% to 2%. Meanwhile, the 2-yr yield, which mimics short-term rate hike expectations, fell from 0.896% to 0.85%. The yields had rallied ahead of the Fed as investors feared the Fed would avoid dovish talk. However, the policy statement did express concerns regarding falling market based inflation expectations, although survey based measures are still largely unchanged. The fed also removed a reference to being 'reasonably confident' inflation will rise to 2% in the medium term. However, the statement reaffirmed gradual path of tightening. Hence, the sell-off in the yield has been moderate. For more information, read our latest forex news.