US Bonds Slip as Fed Minutes Show Higher Rates Still on Table
- The Fed conversations came before signs of ebbing inflation
- Auction of $16 billion of 20-year bonds showed solid demand
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Treasuries fell, led by short-dated debt, after minutes from the Federal Reserve’s latest policy meeting showed “many” officials questioning whether policy was restrictive enough to bring inflation down to target.
Yields on two-year notes rose about 5 basis points to 4.88%, shifting the US yield curve to the flattest in more than a month. Ten-year yields rose 1 basis point to 4.43%. The move started earlier in the day after rates on 10-year UK gilts surged following a stronger-than-expected inflation reading in Britain.