U.S. Treasury yields were mixed on Thursday as investors considered the path ahead for interest rates after minutes from the Federal Reserve's latest meeting indicated caution about cutting rates too soon.
The yield on the 10-year Treasury was slightly above flat at 4.327%. The 2-year Treasury yield was last up by 5 basis points at 4.707%.
Yields and prices have an inverted relationship. One basis point equals 0.01%.
Treasurys
Minutes from the Federal Reserve's January meeting were released Wednesday and suggested policymakers would be careful and not rush to cut rates.
Fed officials were concerned about the "risks of moving too quickly" and were still looking to be more confident in inflation easing before cutting rates.
"Participants generally noted that they did not expect it would be appropriate to reduce the target range for the federal funds rate until they had gained greater confidence that inflation was moving sustainably toward 2 percent," the minutes stated. However, the minutes also suggested that policymakers were not expecting rates to be hiked any further.
The latest inflation insights suggested to many market participants that pressures from higher prices could be stickier than hoped, with the January consumer price index and producer price index coming in higher than expected.
Investors were initially hoping for rate cuts as soon as March but are now expecting the first one to take place in June.