The decision by the Fed's policy-setting committee to cut interest rates for the first time since March 2020 was prefaced by an unusual amount of market uncertainty as to how much the central bank would lower its benchmark rate from a two-decade high of 5.25% to 5.5%, where it has stood since July 2023.

The 2-year rate finished at 3.608% or its lowest level since Sept. 12, 2022. Meanwhile, the 10-year yield fell to 3.643% or its lowest closing level since June 1, 2023. The 30-year rate ended at 3.954% or the lowest level since Dec. 27.

Brazil’s central bank will likely raise interest rates for the first time since 2022 as a heated economy and above-target inflation forecasts make it an outlier in a global easing push emboldened by the Federal Reserve.

Some analysts had said the 50 basis point cut was already priced in by the market, but others said it would be positive for emerging markets such as India, bringing greater foreign inflows over time.

U.S. stocks rose after the Federal Reserve lowered its benchmark interest rates by 50 basis points to a range of 4.75% to 5%. That was the first rate cut in over four years that marked the beginning of a monetary-easing cycle in the world's largest economy.