Treasuries Rise a Day After Latest Rate Cut

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Treasuries were higher Wednesday, a day after the

Federal Reserve

cut interest rates for the 10th time this year.

The two-year note was up 1/32 to 100 27/32, yielding 2.31%. The five-year was up 11/32 to 100 3/32, yielding 3.48%. The 10-year Treasury was rising 17/32 to 106 14/32 to yield 4.19%, and the 30-year bond shot higher by a point to 109 7/32, yielding 4.78%.

On Tuesday, the Fed lowered the fed funds target rate to 2%, the lowest level in 40 years, with a reduction of 50 basis points to the level at which banks lend money overnight to each other. This morning, government data showed that worker productivity rose at a 2.7% annual rate in the third quarter, the fastest pace in more than a year.