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Here's how high bonds could rise as Fed prepares to cut rates

As the Fed meets, here's where yields could head next

Bonds are getting a bid again on Wednesday ahead of the Federal Reserve's decision in the afternoon.

The central bank is expected to cut rates by 25 basis points after it wraps its two-day meeting. That would be the second rate cut this year.

Bond prices have been on the decline, and yields on the rise, over the past two weeks as demand for the safe haven asset has eased. Yields had come under pressure over the summer with recession worries spiking and trade tensions keeping investors on the hunt for safety.

"We've had a very good short-term correction," Mark Newton, technical analyst at Newton Advisors, said on CNBC's "Trading Nation" on Tuesday. "However, the long-term uptrend is still very much intact, and so with all this uncertainty, you know, my thinking is it's right to still be long Treasuries. The third quarter is typically a very bullish time to be long Treasuries."

Newton expects the TLT 20+ year Treasury ETF, which tracks long-term bond prices, to continue to rise over the long term and sees opportunity in any weakness.

"I think that the back half of September, early October, it's right to take a stab at really buying dips in TLT and being long Treasuries, thinking this little spike in yields reverses and we see a pullback back down to potentially lows," he said.

Newton expects a bounce back to $145 on the TLT, implying more than 3% upside. The ETF traded above that level at the beginning of the month.

Michael Binger, president of Gradient Investments, agrees that bond prices should continue to rise and yields fall.

"Yields are going to drip lower over time as we end this year," said Binger. "When I look at the economic picture, the U.S. economy is pretty good, but it's growing at a slower rate than it has, and I think that growth is decelerating a bit more. You know the rest of the world certainly is really struggling for growth right now."

Safe-haven Treasuries typically see heightened demand amid economic uncertainty or in a slowing growth environment. A rate cut from the Fed also puts pressure on yields.

"With the economic picture [and] with negative yields around the world, I think the Fed will feel justified in cutting another 25 basis points at the upcoming meeting here, and I think will drip yields lower here," said Binger.