Treasury yields fell slightly on Wednesday as investors awaited the release of minutes from the latest U.S. Federal Reserve meeting. These minutes could provide clues about the Fed's future monetary policy.
The 10-year Treasury yield was trading at around 3.733% at around 12:30 p.m. ET, down 2.5 basis points. The yield on the 2-year Treasury was down by 2.3 basis points at 4.494%.
Yields and prices move in opposite directions. One basis point equals 0.01%.
Investors will be closely watching the release of the Fed's meeting minutes from November for clues on whether the central bank is planning to slow down the pace of interest rate hikes. Many market participants are hoping that the Fed will eventually pause rate hikes entirely.
At a conference organized by the Central Bank of Chile on Tuesday, Kansas City Fed President Esther George said that interest rates might still have to go up as the Fed works to lower inflation and constrain consumer demand.
George's comments indicated that rates would continue to rise, but potentially at a slower pace, which is consistent with what her colleagues said earlier in the week.
Traders are concerned that the pace of rate hikes could lead the U.S. economy into a recession. They will therefore be scanning durable goods orders and new home sales data, due to be released on Wednesday, for clues about the state of the economy.
Markets will be closed on Thursday in observance of Thanksgiving.
As a leading independent research provider, TradeAlgo keeps you connected from anywhere.