The 10-year U.S. Treasury dipped on Wednesday as investors parsed the Federal Reserve's latest interest rate decision and its plan to ease three times before the end of the year.
The 10-year Treasury yield slipped nearly 2 basis points to 4.281%. The 2-year Treasury yield dropped more than 7 basis point to 4.617%.
Yields and prices move in opposite directions and one basis point is equivalent to 0.01%.
Treasurys
The central bank left benchmark interest rates unchanged on Wednesday afternoon, and stuck with a previous forecast for three cuts in 2024. Policymakers reiterated, however, that cuts will not occur until the Fed has "greater confidence" that inflation is declining back down toward its 2% target.
"We may be getting closer to the first interest rate cut, but it sure doesn't feel that way," said Greg McBride, chief financial analyst at Bankrate. "Interest rates took the elevator going up but will take the stairs coming down."