WASHINGTON (dpa-AFX) - Treasuries showed a lack of direction over the course of the trading session on Wednesday before eventually ending the day roughly flat.
After seeing modest strength early in the session, bond prices moved to the downside in reaction to the Federal Reserve's monetary policy announcement but regained ground going into the close.
Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, crept up by less than a basis point to 4.555 percent.
The roughly flat close by treasuries came after the Fed announced its widely expected decision to leave interest rates unchanged following its first monetary policy meeting of 2025.
The Fed said it decided to maintain the target range for the federal funds rate at 4.25 to 4.50 percent in support of its dual goals of maximum employment and inflation at the rate of 2 percent over the longer run.
The decision to leave rates unchanged came as the Fed noted inflation remains 'somewhat elevated' and reiterated its strong commitment to returning inflation to its 2 percent objective.
Notably, the Fed removed a phrase included in previous statements indicating that inflation has 'made progress' towards it target.
The Fed's latest decision comes after it lowered rates by a total of 100 basis points or 1.0 percentage point over the three previous meetings, beginning with a 50 basis point cut in September.
The central bank's next monetary policy meeting is scheduled for March 18-19, when Fed officials will also provide their latest projections for rates, inflation and the economy.
CME Group's FedWatch Tool is currently indicating a 77.6 percent chance the Fed will once again leave rates unchanged but a 22.3 percent chance of a quarter point rate cut.
Trading on Thursday may continue to be impacted by reaction to the Fed announcement, while reports on weekly jobless claims and fourth quarter GDP are also likely to attract attention.
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