Treasuries Rise With U.S. Stocks as Fed Minutes Signal Low Rates
- Officials split in July on whether rate increase needed soon
- Asian index futures diverge as dollar pares, but holds gains
FOMC Minutes Show Battle Over Rates Raging in Fed
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U.S. bonds and stocks rose after minutes of the Federal Reserve’s last meeting indicated officials saw little risk of a sharp uptick in inflation, fueling bets interest rates will stay lower for longer. The dollar pared gains.
Two-year Treasuries, the most sensitive to policy expectations, halted a back-to-back decline, while the S&P 500 Index rebounded as a rally in utilities and financial stocks overshadowed disappointing results from Target Corp. and Lowe’s Cos. While the greenback advanced against most of its major peers, it lost ground after the Fed’s statement. Oil posted its longest advance since April 2015 as U.S. crude and fuel stockpiles dwindled.