Treasury securities traded in a range until afternoon, but then sold off through the 10-year sector on the disappointing Fed easing of only 25 basis points. The FOMC cut the Fed funds rate to a 3.75% target and the Fed Board cut the discount rate to 3.25%. The risk remains for more ease and the statement emphasized the downside risks for the economy. Nonetheless, players said they were disappointed in the small magnitude of ease, which caught many long after the 2-year Treasury auction. Market players commenced debating whether and how soon the Fed might move again. "The 'monitor closely' language that had last appeared in the March statement -- and had signaled the possibility of an intermeeting move -- did not appear this time around," noted economist David Greenlaw of Morgan Stanley. Treasuries recovered only somewhat after dipping, with accounts liquidating curve steepeners by selling the 2-year sector first, traders said. Bonds were scooped up to complete the trade only after they dipped in price.