US Treasury Yields Hold Firm Ahead of Fed Minutes

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Yields on U.S. Treasuries were flat in early trading on Wednesday ahead of the release of minutes from the Federal Reserve’s March meeting, which could offer clues to the central bank’s thinking on the economic outlook and the moment to withdraw the monetary accommodation. What are Treasurys doing? The yield on the 10-year Treasury note TMUBMUSD10Y, 1.667% rose 0.6 basis points to 1.662%. The 2-year note TMUBMUSD02Y, 0.156% remained stable at 0.157%. while the yield on the TMUBMUSD30Y 30-year bond, 2.337% rose around one basis point to 2.328%. Bond prices move inversely to yields.

What drives the Treasurys? The Fed will release its minutes from its March policy meeting at 2 pm ET. Investors will also see some speeches from senior Fed officials, including Chicago Fed Chairman Charles Evans and Dallas Fed Chairman Robert Kaplan. See: Some Wall Street banks say rate hike bets are overblown, so Buying Bonds Kaplan has said it expected the Fed’s first interest rate hike to come in 2022, in contrast to earlier expectations. moderated from the rest of the Federal Open Market Committee. , the central bank’s rate-fixing group. In US economic data, the trade deficit rose 4.8% in February to record $ 71.1 billion. Mortgage applications fell for the fifth consecutive week in the week ending April 2, down 5.1%. This is because long-term mortgage rates, which use the 10-year Treasury yield as a benchmark, have risen steadily this year. What did market participants say? “The view that all good news has been valued has a large following, but it is probably closer to the truth that prices have stagnated due to low trading volumes,” said Kenneth Broux, strategist at Société Générale . Read: 10-Year Treasury Yield Falls Below 1.70% As Bond Market Looks Past Good Economic News