(Bloomberg) -- Municipal bonds joined the rout in broader debt markets after the Federal Reserve indicated its intention to keep interest rates high for as long as necessary to contain inflation.

Prices fell across the board as benchmark yields on top-rated municipal bonds jumped as much as 16 basis points in trading on Thursday, according to Bloomberg pricing data. The 10-year yield now stands at 3.13%, the highest since November, while the shortest-dated securities yield 3.58%. 

“Market participants are anxiously awaiting the Fed being able to start cutting rates and yesterday’s conversation from the FOMC clearly indicates that the pause is going to be longer than the market was hoping for,” said Pat Luby, a municipal strategist at CreditSights Inc.

Yields on long-dated US Treasuries reached new multi-year highs, with those on the 10-year note hitting the highest since 2007. Meanwhile, stocks dropped as the S&P 500 fell to its lowest since June. 

“I think that we’re going to see continued weakness and I think we’ll see negative price return for the index for this year,” Luby said. 

Read More: S&P 500 Set for Lowest Since June on Fed Jitters: Markets Wrap

The Fed held rates steady on Wednesday at a 22-year high, and most policymakers signaled they would favor one more rate increase this year. Former St. Louis Fed President James Bullard told Bloomberg TV’s Michael McKee that the central bank may need to raise interest rates further and hold them higher to guard against the risk of a reacceleration of inflation.

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