WASHINGTON (dpa-AFX) - After closing roughly flat for two straight days, treasuries showed a notable move to the downside during trading on Wednesday.
Bond prices saw considerable volatility following the Federal Reserve's monetary policy announcement but closed firmly in the red. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, climbed 5.0 basis points to 5.05 percent.
Treasuries initially recovered from morning weakness in reaction to the Fed announcement, with the ten-year yield climbing back near the unchanged line.
However, selling pressure re-emerged in the latter part of the trading day amid increased expectations of a Fed rate hike in December.
The lower closed by treasuries came after the Fed announced its widely expected decision to leave interest rates unchanged following its latest meeting.
The Fed said it decided to maintain the target range for the federal funds rate at 3.75 to 4.0 percent in support of its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run.
Unlike last month's unanimous decision to raise rates by a quarter point, there was some division among Fed officials at the latest meeting.
The central bank revealed that Fed Governor Lisa Cook and Cleveland Fed President Beth Hammack voted against leaving rates unchanged, preferring to raise rates by another quarter point.
The Fed's accompanying statement acknowledged inflation remains elevated but said the accumulation of more information will help determine the policy stance appropriate to ensure a timely return of inflation to the 2 percent goal. The Fed declared it 'will deliver price stability.'
The central bank's next monetary policy meeting is scheduled for December 8-9, with CME Group's FedWatch Tool currently indicating an 82.6 percent chance the Fed will raise rates by a quarter point.
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