Reported 5 months ago
US bond prices declined, particularly short-dated debt, following the release of Federal Reserve meeting minutes indicating that several officials questioned if current policy was restrictive enough to bring inflation down to target levels. Yields on two-year notes rose approximately 5 basis points to 4.88%, leading to the flattest US yield curve in over a month, while ten-year yields increased by 1 basis point to 4.43%. The minutes revealed a willingness among some officials to tighten policy further if necessary, although recent US inflation data showing a cooling in price pressures tempered market reactions. Traders have adjusted rate cut expectations, with Nomura Securities now forecasting the Fed may first reduce rates in September instead of July.
Source: YAHOO