The 10-year Treasury yield reaches its lowest point since August, coinciding with the Fed's prediction of easing interest rates three times in 2021.

On Wednesday, the 10-year Treasury yield reached its lowest level since August, despite the Federal Reserve keeping rates steady for a third consecutive meeting and indicating three cuts in 2024.

The 10-year Treasury yield decreased by 16 basis points to 4.048%, reaching a low of 4.015%. The last time the 10-year traded below 4% was on Aug. 10, when it hit 3.957%. Meanwhile, the 2-year Treasury yield dropped by 25 basis points to 4.485%.

An inverse relationship exists between yields and prices, with one basis point equivalent to 0.01%.

The Fed kept interest rates unchanged at its policy meeting and gave more details about the future, predicting three cuts in 2024. The committee's "dot plot" showed four cuts in 2025 and three in 2026, resulting in a fed funds rate of 2% to 2.25%.

The Fed's meeting statement showed little change, but traders were happy about the central bank's prediction of rate easing. However, the statement also noted that inflation has decreased over the past year.

The central bank revised its inflation forecast for 2024, predicting a 2.4% rate instead of the previously forecasted 2.6%.

Jerome Powell's press conference at 2:30 p.m. ET is eagerly anticipated by investors for insights into future policy decisions.

In the morning, wholesale prices gave another positive inflation update with the producer price index remaining unchanged for the month, despite the Dow Jones forecasting a 0.1% increase. This comes after Tuesday's consumer price index, which increased by 0.1% monthly and 3.1% annually in November.