World stock indexes fell Thursday, a day after the U.S. Federal Reserve reaffirmed the outlook for more rate hikes, while bond yields slid after a surprising drop in euro zone inflation data.

Benchmark U.S. 10-year notes last rose 10/32 in price to yield 2.929 percent, from 2.964 percent late Wednesday.

The Fed statement was not quite as hawkish as some had expected, though sentiment remained bullish given U.S. rates were still clearly heading higher.

The U.S. dollar erased all its 2018 losses in the past two weeks on expectations the Fed will continue to raise rates, even as other world central banks, including the European Central Bank, take longer to reduce stimulus.

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