Treasuries Gain as Fed Cuts, Traders Wager on Two More in 2026

US Treasuries rose after the Federal Reserve lowered interest rates by a quarter-point for a third straight meeting and left the door open to additional policy easing in 2026.

Yields fell across the curve on Wednesday, sinking from multimonth highs. But the Fed-sensitive two-year note led the rally, tumbling almost 8 basis points to 3.54%, for its largest one-day slide in two months. Treasuries extended gains after Fed Chair Jerome Powell highlighted concern about weaker hiring.