FX.co ★ Treasuries Extend Upward Trend Following Fed Announcement

Treasuries experienced moderate gains on Wednesday, continuing the upward trajectory observed in recent trading sessions.

Throughout the day, bond prices displayed fluctuation but ultimately ended on a positive note. The yield on the benchmark ten-year note, which inversely correlates with its price, declined by 3.4 basis points to settle at 4.109%.

This marked the fifth consecutive session in which the ten-year yield has decreased, reaching its lowest close in over four months.

Optimism regarding the outlook for interest rates initially buoyed Treasuries, with further support following the Federal Reserve's monetary policy announcement.

As anticipated, the Fed maintained interest rates at their current level. However, nuanced adjustments in the accompanying statement suggest potential future rate cuts.

The Fed highlighted its attention to risks affecting "both sides of its dual mandate," a shift from its previous focus on being "highly attentive to inflation risks."

The next Federal Reserve monetary policy meeting is slated for September 17-18, with widespread expectations of a rate reduction.

According to CME Group's FedWatch Tool, there is a 93.5 percent likelihood that the Fed will implement a quarter-point rate cut in September.

Looking forward, a range of U.S. economic data is set for release on Thursday, including reports on weekly jobless claims, labor productivity and costs, manufacturing activity, and construction spending.