Treasuries slid for the third day Wednesday amid expectations that inflation will continue to increase after the U.S. Federal Reserve's move to lower interest rates.

Policy makers cut the Fed funds rate, which is used by banks to make overnight loans to each other, by half a percentage point to 4.75 percent in an effort to spur economic activity. The rate is tied to many consumer credit products.

While stocks soared after the move inflation watchers warned that cheaper money will lead to higher prices. The half a point cut was also higher than the quarter point cut many had expected.

The 10-year Treasury note fell 14/32 at 101 25/32 with a yield of 4.526 percent, up from 4.471 percent on Tuesday.

The two-year note fell 1/32 at 110 1/32, with a yield of 3.982 percent.

Inflation