Treasury yields fell to session lows on Wednesday after the Federal Reserve released the minutes of its latest policy meeting, saying conditions for a rate increase were "approaching," but not at hand.
Policymakers at the U.S. central bank said conditions hadn't been achieved yet for the first policy tightening in nearly 10 years, due primarily to inflation that is not yet moving toward the necessary conditions.
The yield on the benchmark 10-year Treasury note declined 6 basis points to a session low of 2.13 percent. It stood as high as 2.23 percent earlier in the session. Short-term maturities were also at session lows.
The yield on the 30-year bond was the lease affected by the decision. It stood at 2.84 percent and was little changed on the day.
Following the announcement, RBS said its calculation of market pricing suggests traders are betting that the Fed's first full rate hike will occur in January.
Expectations for a rate increase in September fell to 36 percent. The odds for a December rate hike declined to 85 percent, from 100 percent before the minutes were released.