WASHINGTON (dpa-AFX) - After moving to the upside early in the session, treasuries gave back ground over the course of the trading day on Wednesday.
Bond prices pulled back well off their early highs, ending the day roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, crept up by less than a basis point to 4.129 percent after hitting a low of 4.096 percent.
The roughly flat close by treasuries came following the release of the minutes of the Federal Reserve's September monetary policy meeting.
The Fed announced its widely expected decision to lower interest rates by 25 basis points to 4.0 percent to 4.25 percent following the meeting, citing a shift in the balance of risks.
The minutes revealed that most participants observed it was appropriate to lower rates toward a more neutral setting because downside risks to employment had increased and upside risks to inflation had either diminished or not increased.
However, the Fed noted a few participants believed there was merit in keeping rates unchanged at the meeting or that they could have supported such a decision.
These participants noted that progress toward the central bank's 2 percent inflation objective had stalled this year and expressed concern that longer-term inflation expectations may rise if inflation does not return to its objective in a timely manner, the Fed said.
With regard to the outlook for monetary policy following the rate cut, the minutes revealed participants expressed a range of views about the degree to which the current stance of policy was restrictive and about the likely future path of policy.
Most judged that it likely would be appropriate to ease policy further over the remainder of this year, the Fed said, although some noted financial conditions warrant a cautious approach in the consideration of future policy changes.
Trading on Thursday may be impacted by reaction to remarks by several Federal Reserve officials, including Fed Chair Jerome Powell.
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