The Federal Open Market Committee (FOMC) concluded its two-day policy meeting Wednesday, it said short-term rates would remain targeted at 0%-0.25%. The central bank indicated that rates could stay anchored near zero through 2023.
Officials also changed their economic forecasts to reflect a smaller decline in GDP and a lower unemployment rate in 2020.
Earlier in the day, yields dipped after data showed consumer spending slowed in August. The Commerce Department said retail sales gained 0.6% last month, below a Dow Jones estimate of a 1.1% increase and lower than a 1.2% jump in July.
In other news, the World Trade Organization has determined that the U.S. violated its international trade rules through its imposition of multi-billion dollar tariffs on Chinese goods as part of the recent trade war between the two economic powerhouses.
House Speaker Nancy Pelosi on Tuesday signaled that Democrats were open to postponing the planned October recess in order to work toward a compromise on a new coronavirus aid package. The White House has indicated a $1.5 trillion proposal from the Problem Solvers Caucus, a bipartisan group of lawmakers from both sides of the aisle.
Auctions will be held Wednesday for $25 billion of 105-day Treasury bills and $30 billion of 154-day bills.