Investors and traders spent the early part of the week awaiting the Federal Reserve's latest interest rate decision. During this period, US Treasury yields retreated, though some movements were modest compared to other overnight market activity.
While the central bank was widely expected to leave interest rates unchanged, investors remained cautious and prepared for a possible surprise.
Federal Reserve officials ultimately kept their benchmark steady on Wednesday. Following this decision, US bond traders lowered their expectations that the central bank will raise interest rates at its next meeting.