The slide in benchmark 10-year yields as traders sold Treasurys extending Wednesday's fall (http://www.marketwatch.com/story/treasury-yields-inch-higher-ahead-of-the-feds-statement-2015-10-28), which came after the Fed's policy setting committee kept benchmark rates unchanged but surprised investors by hinting at the possibility that it could raise rates for the first time in almost a decade at its December meeting. A Commerce Department report showed United States gross domestic product expanded at a 1.5 percent annual rate in the third quarter, down from a 3.9 percent pace in the second quarter. USA two-year and five-year Treasuries yields rose to their highest levels in a month at 0.7230 percent and 1.472 percent, respectively, according to Reuters data. Benchmark 10-year Treasuries notes fell 13/32 in price to yield 2.140 percent, up 5 basis points on the day. Many analysts pointed to the fact that the Fed statement removed a reference to global economic and financial developments potentially restraining economic activity. In New York trading at about 1.55pm, the Dow Jones industrial average fell 0.3 percent, while the Standard & Poor's 500 Index slid 0.2 percent and the Nasdaq Composite Index shed 0.3 percent. It was last down 0.6 percent on Thursday. But economists expect growth to pick up in the fourth quarter, given strong consumer spending figures. MSCI's broadest index of Asia-Pacific shares outside Japan.MIAPJ0000PUS was down 0.3 percent. The dollar was down 0.2 percent at 120.87 yen JPY= after spiking as high as 121.26 on Wednesday from a session low of 120.02. The euro extended its losses, slipping about 0.1 percent to $1.0919 EUR= after skidding to a 2-1/2 month low of $1.0826 overnight. The Fed's stance contrasts to the European Central Bank and other major central banks, a factor that is expected to underpin the dollar. The fact the central bank specifically mentioned its next meeting immediately triggered a significant move up in market expectations for a Fed rate rise this year. Spot gold fell 2 percent to $1,150 an ounce. NYSE Post http://nysepost.com/aust-bonds-mixed-as-us-usa-rate-hike-odds-rise-31339
