US Treasury prices rise following Fed rate decision

U.S. sovereign bond prices climbed on Wednesday following the Federal Reserve's April rate decision.

The yield on the benchmark 10-year Treasury note, which moves inversely to its price, dipped to 1.853 percent in choppy trade from 1.891 percent immediately prior to the announcement.

The 30-year Treasury bond yield slid to 2.702 percent from 2.726 percent before the announcement.


It marks a retreat from fresh highs hit in Tuesday's session, when the 10-year yield reached 1.941 percent, its highest since March 23.

The Fed held interest rates steady at its April meeting and acknowledged a slowdown in the economy.

"Economic activity appears to have slowed," the Federal Open Market Committee said in a statement released after its two-day meeting.

On the data front, March trade deficit figures deficit came in at $56.90 billion, narrowing from the $62.86 gap reported in the prior month.

Pending home sales rose 1.4 percent in March, above the expected 0.5 percent rise.

No major Treasury auctions are expected.