Treasuries struggled to find direction on Wednesday but ultimately fell as the yield on the 10-year note rose to 4.058 percent, its highest closing level in three weeks. Federal Reserve Chair Jerome Powell’s post-meeting comments dampened hopes for another rate cut in December, causing treasuries to weaken. Powell emphasized the uncertainty caused by the government shutdown and differing views among Fed officials on future rate cuts. CME Group’s FedWatch Tool now shows a 33.3 percent chance of rates remaining unchanged in December. The Fed lowered rates by 25 basis points to 3.75-4.0 percent, citing increased downside risks to employment. Fed officials were divided on the decision, with some advocating for a larger rate cut and others preferring to keep rates steady.

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