As investors assess the monetary policy outlook, the 10-year Treasury yield retreats.

As Federal Reserve officials commented on monetary policy, the 10-year Treasury yield decreased on Wednesday, prompting investors to contemplate the future course of action.

The yield decreased by more than 6 basis points to 4.505%, while the yield increased by 2 basis points to 4.938%.

Prices and yields move in opposite directions, with one basis point equal to 0.01%.

The Federal Reserve's ability to achieve a soft landing was taken into account by investors while considering the outlook for interest rates and the economy.

Since the Fed started raising interest rates in early 2022, a recession caused by high rates has been a major worry among investors. Despite this, the economy has shown strength, with the central bank increasing its growth forecast at a recent meeting.

Recently, investors have been hoping that the Fed will stop raising interest rates, as indicated by the cooling of the labor market, despite recent jobs data.

Last week, Fed Chair Jerome Powell stated that the possibility of increasing interest rates is still being considered and that the central bank has not yet discussed reducing them.