Bond Traders React to Fed Minutes

U.S. Treasury prices hit session lows on Wednesday after the minutes from the Federal Reserve’s latest policy meeting showed the central bank was surprised at the quick progress in the labor market.

Benchmark 10-year Treasury notes lost 10/32 in price, yielding 2.44 percent, while 30-year notes fell 12/32 in price to yield 3.24 percent.  Yields on the short end of the curve were also at session highs after the announcement.

Minutes of the Fed’s July 29-30 meeting showed that some officials thought the economy was improving enough that the Fed would need “to call for a relatively prompt move” toward reducing the support it has been providing. Otherwise, they felt the Fed risked overshooting its targets for unemployment and inflation.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.