U.S. Treasury yields fell Wednesday after traders absorbed the release of new inflation figures, as well as the Federal Reserve's latest meeting minutes.
The 10-year Treasury note yield fell 3 basis points to 3.404%, while the 2-year Treasury rate slid 9 basis points to 3.968%
Yields and prices have an inverted relationship. One basis point is equivalent to 0.01%.
Treasurys
Minutes from the March Federal Open Market Committee meeting released Wednesday showed the central bank expects a recession this year on the turmoil in the banking sector stemming from the collapse of Silicon Valley Bank.
"Given their assessment of the potential economic effects of the recent banking-sector developments, the staff's projection at the time of the March meeting included a mild recession starting later this year, with a recovery over the subsequent two years," the meeting summary said.
Meanwhile, in an interview with CNBC's "Squawk on the Street," Richmond Federal Reserve President Thomas Barkin said "we're still a ways" to go on inflation.
The consumer price index rose 0.1% in March on a month-over-month basis. Economists expected an increase of 0.2%, according to Dow Jones. Year over year, the CPI rose 5% while economists had forecast a 5.1% advance. That year-over-year figure is also lower than the 6% jump seen in February.
Core CPI, which strips out food and energy prices, rose 0.4% month over month.
The Fed's next interest rate decision in May is likely to be impacted by the fresh inflation figures. The central bank noted after its last meeting that a rate hike pause could be on the horizon if data showed sufficient signs that the economy is cooling.
In a speech at the Wharton School at the University of Pennsylvania on Tuesday, Philadelphia Fed President Patrick Harker indicated that he would support rates being hiked slightly higher and then staying elevated for some time. Â Â