US Treasury yields fell Wednesday as investors awaited the release of the Federal Reserve’s latest minutes and assessed the outlook for monetary policy.
At 3:46 a.m. ET, the yield on the 10-year Treasury bond fell less than one basis point to 3.9468%. It had briefly risen to 3.966% earlier in the session, a level last seen in early November.
The 2-year Treasury yield last traded around 4.685% after falling nearly two basis points.
Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.
Treasure Chests
| TICKER | COMPANY | YIELD | CHANGE | %CHANGE |
|---|---|---|---|---|
| US1M | 1 month US Treasury | 4.598% | +0.012 | 0.00% |
| US3M | US Treasury at 3 months | 4.877% | +0.043 | 0.00% |
| US6M | US Treasury at 6 months | 5.134% | +0.024 | 0.00% |
| US1J | US Treasury at 1 year | 5.076% | +0.008 | 0.00% |
| US2Y | US Treasury at 2 years | 4.702% | -0.002 | 0.00% |
| US10Y | US Treasury at 10 years | 3.962% | +0.009 | 0.00% |
| US30Y | US Treasury of 30 years | 3.982% | +0.006 | 0.00% |
Investors considered what the Fed’s next policy moves might be, including on interest rates, after several Fed officials hinted that further hikes were on the horizon.
Many are hoping for new clues on Wednesday, when the minutes of the central bank’s last meeting on January 31 and February 1 are published. The Fed then raised rates by 25 basis points, although several central bank officials confirmed they favored a 50 basis point hike.
It was the eighth consecutive rate hike as the Fed’s battle against persistently high inflation continued.
Earlier this month, both consumer and wholesale inflation were higher than expected on a monthly basis for January. Meanwhile, Fed speakers indicated that economic data will inform future policy decisions, raising concerns about further and possibly stronger rate hikes.
Many investors are concerned about the impact of high interest rates on the US economy and fear that the pace of rate hikes could lead to a recession.
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