U.S. government debt yields slipped on Tuesday even as the Federal Reserve pointed to higher inflation in its most recent meeting on monetary policy.
The U.S. central bank kept interest rates unchanged Wednesday, as was largely expected, but hinted at higher inflation over the coming months.
The committee noted that "overall inflation and inflation for items other than food and energy have moved close to 2 percent." That was an upgrade from the March meeting in which the Federal Open Market Committee said the indicators "have continued to run below 2 percent."
At the latest reading, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 2.948 percent, while the yield on the 30-year Treasury bond was also lower at 3.119 percent.
The bid for bonds could be coming from a number of factors as investors shrug off the central bank's warnings of further price increases throughout the economy.