WASHINGTON (dpa-AFX) - Treasuries showed a notable move to the upside during trading on Wednesday, more than offsetting the weakness seen in the previous session.
Bond prices advanced early in the session and remained firmly positive throughout the trading day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 5.5 basis points to 4.238 percent.
The strength among treasuries came as traders continued to digest yesterday's closely watched consumer price inflation data
With the consumer price inflation data largely coming in line with economist estimates, the Fed is widely expected to lower rates by a least a quarter point next month.
U.S. Treasury Secretary Scott Bessent wants the Fed to keep the door open to a larger, 50 basis point rate cut next month following recent weak jobs data.
CME Group's FedWatch Tool is currently indicating a 95.8 percent chance the Fed will cut rates by 25 basis points in September.
President Donald Trump also continues to pressure Fed Chair Jerome Powell to lower rates and recently threatened to allow a 'major lawsuit' against him over renovations at the Fed's headquarters to proceed.
Trading on Thursday may be impacted by reaction to reports on weekly jobless claims and producer price inflation.
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