Update: Treasuries and dollar spike, markets fall as Fed hikes rates for first time in a year

Second rate rise since December 2015

In a widely expected move the Federal Reserve has increased interest rates by another 25bps, marking its first hike since last December, as the US labour market and economy continue to strengthen.

The Federal Open Market Committee (FOMC) has decided to raise the Federal Funds Rate in the US to 0.5%-0.75% following its December meeting. However, the market was surprised by the change in the Fed's forward guidance, with the central bank suggesting it will hike rates three times next year, instead of the two increases expected. The US dollar soared to 14-year highs, with the dollar index against a basket of other currencies, up at 102.62. It is currently trading $1.2546 against the pound and $1.0484 against the euro. Meanwhile, benchmark 10-year treasury yields spiked 2.1% to 2...