WASHINGTON (dpa-AFX) - Treasuries moved to the downside during trading on Wednesday, adding to the slight decrease seen during the previous session.
Bond prices moved steadily lower for much of the day before regaining some ground going into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 2.8 basis points to 4.251 percent.
While treasuries typically benefit from times of increased geopolitical turmoil, a continued surge by the price of gold may suggest the precious metal is seen as the preferred safe haven asset.
Treasuries saw continued weakness as the Federal Reserve announced its widely expected decision to leave interest rates unchanged.
The Fed said it decided to maintain the target range for the federal funds rate at 3.50 to 3.75 percent following three consecutive quarter point rate cuts.
As with other recent decisions, the choice to leave rates unchanged was not unanimous, as Fed Governors Stephen I. Miran and Christopher J. Waller preferred cutting rates by another quarter point.
The Fed said the decision to leave rates unchanged came amid elevated uncertainty about the economic outlook.
The central bank also said it remains attentive to the risks to both sides of its dual mandate of maximum employment and inflation at the rate of 2 percent over the longer run.
'While not a unanimous vote, there does seem to be a clear and consistent majority in favor of a pause in this rate-cutting cycle, a pause that likely continues unless or until the job market weakens further,' said Mortgage Bankers Association SVP and Chief Economist Mike Fratantoni.
He added, 'With inflation remaining elevated, the FOMC majority does not seem in any rush to make further rate moves.'
CME Group's FedWatch Tool suggests investors currently expect the Fed to keep rates on hold until after Fed Chair Jerome Powell steps down in May.
Trading on Thursday may be impacted by reaction to a report on weekly jobless claims, while reports on the U.S. trade deficit and factory orders may also attract attention.
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