Treasuries Move Higher For Third Consecutive Session

(RTTNews) - After moving notably higher over the course of the two previous sessions, treasuries saw further upside during trading on Wednesday.

Bond prices advanced early in the day and remained in positive territory throughout the session. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, slid 6.5 basis points to 4.271 percent.

The ten-year yield moved lower for the third consecutive session, once again ending the day at its lowest closing level in well over two months.

Treasuries continued to benefit from optimism the Federal Reserve is done raising interest rates following yesterday's remarks by Federal Reserve Governor Christopher Waller.

Waller said he is "increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2 percent."

Traders have seemingly ignored comments from Fed Governor Michelle W. Bowman, who said she expects further rate hikes will be needed.

On the U.S. economic front, revised data released by the Commerce Department showed the U.S. economy grew faster than previously estimated in the third quarter of 2023.

The Commerce Department said the jump by real gross domestic product in the third quarter was upwardly revised to 5.2 percent from the previously reported 4.9 percent. Economists had expected the pace of growth to be upwardly revised to 5.0 percent.

The faster than previously estimated growth reflected upward revisions to non-residential fixed investment and state and local government spending that were partly offset by a downward revision to consumer spending.

Meanwhile, the Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, said economic activity has slowed since the previous report.

The Fed said four districts reported modest growth, two indicated conditions were flat to slightly down, and six noted slight declines in activity.

Trading on Thursday is likely to be driven by reaction to key inflation readings, while traders are also likely to keep an eye on reports on weekly jobless claims and pending home sales.