Treasuries Move Back To The Upside Following Yesterday's Pullback

(RTTNews) - Treasuries climbed firmly into positive territory over the course of the trading day on Wednesday, largely offsetting the pullback seen in the previous session.

Bond prices gave back ground after an early advance but moved back to the upside as the day progressed. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 5.8 basis points to 3.710 percent.

The rebound by treasuries came as traders kept an eye on remarks by Federal Reserve Chair Jerome Powell during a panel discussion at the European Central Bank Forum on Central Banking in Sintra, Portugal.

Powell reiterated that he expects additional interest rate hikes in the months ahead and said raising rates at consecutive meetings is not off the table

The Fed Chief was joined by European Central Bank President Christine Lagarde, Bank of England Governor Andrew Bailey and Bank of Japan Governor Kazuo Ueda.

While the Fed's forecasts suggest two more rate hikes before the end of the year, traders seemingly remain optimistic the central bank will not follow through.

CME Group's FedWatch Tool currently indicates an 81.8 percent chance of another quarter point rate hike next month but much lower chances of additional increases this year.

Trading on Thursday may be impacted by reaction to reports on weekly jobless claims and pending home sales as well as the final reading on first quarter GDP.