Bond yields tick lower, cooling off after Fed's meeting minutes released
Bond yields ticked downward on Thursday, cooling off after rising during the previous session following the release of the Federal Reserve Open Market Committee's July meeting minutes.
The yield on the benchmark 10-year Treasury note was nearly 2 basis points lower at 2.877%, while the yield on the 30-year Treasury bond traded more than a basis point lower at 3.132%. The yield on the short-term 2-year Treasury note was last down more than 8 basis points at 3.21%.
Yields move inversely to prices, and a basis point is equal to 0.01%.
Treasurys
| TICKER | COMPANY | YIELD | CHANGE |
|---|---|---|---|
| US1M | U.S. 1 Month Treasury | 5.381% | +0.018 |
| US3M | U.S. 3 Month Treasury | 5.435% | +0.046 |
| US6M | U.S. 6 Month Treasury | 5.389% | +0.015 |
| US1Y | U.S. 1 Year Treasury | 5.147% | +0.013 |
| US2Y | U.S. 2 Year Treasury | 4.82% | -0.005 |
| US10Y | U.S. 10 Year Treasury | 4.424% | +0.004 |
| US30Y | U.S. 30 Year Treasury | 4.566% | +0.005 |
Minutes released Wednesday indicated that the Fed would continue hiking rates until inflation slows substantially, although the central bank could soon slow its tightening pace.
"With inflation remaining well above the Committee's objective, participants judged that moving to a restrictive stance of policy was required to meet the Committee's legislative mandate to promote maximum employment and price stability," the minutes stated. The Fed raised rates by 75 basis points at its July 26-27 meeting.
The deliberation came as monetary policymakers worldwide attempt to navigate an environment of both high inflation and signs of economic slowdown.
"Bottom line, the market continues to view virtually all Fed utterances as implying a less-hawkish pivot and Wednesday wasn't any exception as the FOMC minutes erased the dollar's earlier gains and cut the rise in Treasury yields as stocks continue to ignore signals from the currency and bond markets that imply the Fed will not be making this hoped for pivot anytime soon," wrote Tom Essaye of The Sevens Report.
On the economic data front, initial jobless claims released Thursday for the week ended Aug. 13 dropped 2,000 to 250,000.