The 10-year U.S. Treasury yield rose Wednesday as markets reopened after the Fourth of July holiday and investors absorbed the release of the Federal Reserve's latest meeting minutes.
The benchmark 10-year Treasury rose by more than 7 basis points to 3.932%. The yield on the 2-year Treasury was little changed at 4.942%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Treasurys
Minutes from the Fed's June meeting indicated a slower pace of tightening, though they also reflected that a majority of Fed members continue to see more rate hikes ahead in spite of the June pause.
"Many [officials] also noted that, after rapidly tightening the stance of monetary policy last year, the Committee had slowed the pace of tightening and that a further moderation in the pace of policy firming was appropriate in order to provide additional time to observe the effects of cumulative tightening and assess their implications for policy," the minutes said.
Since the last Fed meeting, policymakers including central bank chief Jerome Powell have repeatedly indicated that further interest rate hikes will likely be needed to bring inflation down and cool the economy. Powell has also suggested that rate increases could be announced at a pace that is faster than previously anticipated.
This comes after the central bankers kept rates unchanged at their June meeting, noting that the pause allowed officials to consider fresh data and the impact of previous rate hikes.
According to CME Group's FedWatch tool, traders are currently pricing in a 88.7% chance of the Fed hiking rates again at its July meeting.
Investors also looked ahead to new labor markets data expected later in the week, including JOLTs job openings and ADP's employment change report on Thursday — and June's jobs report on Friday. These data points are likely to inform the Fed's next policy move as well as provide clues about the state of the U.S. economy.