Treasuries Extend Gains on Fed; Asia Stocks Mixed: Markets Wrap(Bloomberg) -- Treasuries extended gains while Asian stocks were mixed after the Federal Reserve struck a dovish tone in its latest policy statement. U.S. futures rose.The 10-year Treasury yield dropped below 2% to its lowest since November 2016. Stocks posted modest gains in Tokyo and were little changed in South Korea and Australia. Earlier, the S&P 500 Index rose as the Fed indicated an increased readiness to cut interest rates and the yield on two-year Treasuries slumped.The dollar slipped. Next up comes the Bank of Japan policy decision, where government-bond yields remained under pressure.Seven of 17 Federal Reserve officials now think it will be appropriate to lower the benchmark overnight rate by a half-percentage point by the end of the year, according to updated projections published Wednesday. The Fed cited “uncertainties” in the outlook that have increased the case for a rate reduction as officials seek to prolong the near-record U.S. economic expansion.“This was a more dovish result than many had expected,” Tiffany Wilding, U.S. economist at Pacific Investment Management Co., told Bloomberg TV. “When you have heightened uncertainty and potential trade-policy shocks at a time when the economy is already in a fragile state, it makes sense for the Federal Reserve from a risk management perspective to really guide toward interest-rate cuts if they are needed.”Bond traders are virtually certain that the Fed will ease policy as soon as next month. The rate implied for the July 31 Fed decision dropped by 7 basis points to about 2.06%. That suggests about 31 basis points of rate cuts by then. The January 2020 fed funds futures contract implies close to 75 basis points of easing by the end of 2019.Elsewhere, oil recovered to trade above $54 a barrel after a report showing a decline in U.S. crude supplies and record gasoline consumption and OPEC and its allies agreed an early July date to discuss extending production cuts.These are the main moves in markets:StocksTopix Index rose 0.5% as of 9:07 a.m. in Tokyo.Kospi Index fell 0.1%.S&P/ASX 200 Index was little changed.S&P 500 Index futures rose 0.3%. The S&P 500 Index closed up 0.3%.CurrenciesThe yen rose 0.1% to 107.97 per dollar.The offshore yuan held at 6.8916 per dollar.The Bloomberg Dollar Spot Index declined 0.2%.The euro bought $1.1248, up 0.2%.BondsThe yield on 10-year Treasuries fell two basis points to 2.00%.CommoditiesWest Texas Intermediate rose 1.4% to $54.50 a barrel.Gold was little changed at $1,359.60 an ounce.\--With assistance from Sarah Ponczek, Vildana Hajric and Scarlet Fu.To contact the reporter on this story: Adam Haigh in Sydney at ahaigh1@bloomberg.netTo contact the editors responsible for this story: Christopher Anstey at, Cormac Mullen, Joanna OssingerFor more articles like this, please visit us at©2019 Bloomberg L.P.