WASHINGTON (dpa-AFX) - After trending lower over the past several sessions, treasuries showed a modest move back to the upside during trading on Wednesday.
Bond prices saw considerable volatility late in the session before closing in positive territory. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.2 basis points to 4.164 percent.
The decrease by the ten-year yield came after it ended Tuesday's trading at its highest closing level in over two months.
Treasuries saw significant late-day volatility after the Federal Reserve announced its widely expected decision to cut interest rates by another quarter point, matching the rate cuts seen in September and October.
The Fed said it decided to lower the target range for the federal funds rate by 25 basis points to 3.50 to 3.75 percent.
While a majority of Fed officials voted to cut rates by another quarter point, three cast dissenting votes for the first time since September 2019.
Fed Governor Stephen Miran preferred lowering rates by 50 basis points, while Chicago Fed President Austan Goolsbee and Kansas City Fed President Jeffrey Schmid preferred to leave rates unchanged.
The central bank's latest summary of economic projections also showed significant divisions about the outlook for rates.
The forecast for rates at the end of 2026 was unchanged from September at a range of 3.25 to 3.50 percent, suggesting just one more quarter point rate cut next year.
However, the closely watched 'dot plot' of individual officials' expectations showed widely divergent views, with one official forecasting rates at a range of just 2.0 to 2.25 percent by the end of 2026 and some predicting higher rates.
The divided views among Fed officials come as the central bank seeks to balance its dual goals of achieving maximum employment and inflation at the rate of 2 percent over the longer run.
The Fed said it judges that downside risks to employment have risen in recent months while also noting inflation has moved up since earlier in the year and remains somewhat elevated.
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