WASHINGTON (dpa-AFX) - After coming under pressure late in the previous session, treasuries saw further downside during the trading day on Thursday.
Bond prices regained some ground after an early slump but remained firmly in negative territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 3.5 basis points to 4.093 percent.
The ten-year yield added to the 7.5 basis point jump seen on Wednesday, climbing further off its lowest levels in nearly three weeks.
Renewed uncertainty about the outlook for interest rates continued to weigh on treasuries following remarks by Federal Reserve Chair Jerome Powell on Wednesday.
While the Fed lowered interest rates by another quarter point as widely expected, Powell's post-meeting remarks partly offset optimism about another rate cut in December.
Powell said a further reduction in rates in December is 'not a foregone conclusion,' noting Fed officials had 'strongly differing views about how to proceed' at the final meeting of the year.
CME Group's FedWatch Tool is currently indicating a 72.8 percent chance the Fed will lower rates by another quarter point in December, down from 91.1 percent a week ago.
The extended pullback by treasuries also came amid upbeat news out of a highly-anticipated meeting between President Donald Trump and his Chinese counterpart Xi Jinping.
The U.S. has agreed to reduce fentanyl-linked tariffs on China to 10 percent from 20 percent, while China has agreed to resume purchases of U.S. soybeans
China will also suspend the implementation of new export controls on rare earths, and in return, the U.S. will suspend its 50 percent penetration rule on export controls.
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