Treasuries rose after minutes from the Federal Reserve’s latest policy-setting meeting showed policy makers are likely to keep interest rates lower for longer.
Fed officials last month didn’t expect to raise rates at their next meeting in June even as they concluded that a first-quarter economic slowdown was unlikely to persist, minutes of the meeting show.
U.S. debt rose earlier as the central bank weighs whether U.S. economic growth can withstand a rise in borrowing costs. Reports showing below-target inflation and a strong labor market were released after the Fed’s meeting.
Sean Simko, who manages $8 billion at SEI Investments Co., said he will be focusing closely on speeches from Fed officials including Vice Chairman Stanley Fischer on Thursday and Chair Janet Yellen the following day to gauge of their views on the economy.
“If there’s any guidance change on where liftoff may occur, it’ll come out in the various speeches this week,” he said by phone from Oaks, Pennsylvania before the Fed release.
The 10-year yield fell four basis points, or 0.04 percentage point, to 2.25 percent as of 2:03 p.m. New York time, according to Bloomberg Bond Trader data.