US Treasury yields fell on Thursday morning, as investors reviewed minutes of the Federal Reserve’s latest meeting.
Return on benchmark 10-year Treasury bond down 3 basis points to 2.7165% at 3:45 a.m. ET. Productivity per 30-year Treasury bond down 2 basis points to 2.9412%. Yields move inversely with price and 1 basis point equals 0.01%.
Fed issued minute from its May meeting on Wednesday afternoon, indicates that the central bank is prepared to continue with more rate hikes of 50 basis points, potentially going further than market expectations.
The Federal Open Market Committee also said the central bank could shift from its “neutral” policy stance to “restricted” territory.
Yogi Dewan, CEO and founder at H Kali Asset Management, told CNBC’s “Squawk Box Europe” on Thursday that the Fed minutes were “much less hawkish than market expectations and we always see the Fed’s rate hike expectations as exaggerated.”
For this reason, Dewan said his firm anticipates fewer rate hikes due to the slowing economic growth but notes that “the problem is you don’t have the economic data in front of you to justify it.” for that. [in terms of how] it will release within the next three to six months. “
Treasury yields were little changed on Wednesday after the minutes, while US stocks edged higher.
However, disappointing earnings updates from key tech companies dragged the market this week, stoking concerns about a slowing economic growth rate.
On Thursday, a second estimate of US gross domestic product growth for the first quarter will be released at 8:30 a.m. ET.
The number of jobless claims filed for the week ending May 21 will also be released at 8:30 a.m. ET.
Pending home sales data for April is scheduled for release at 10 a.m. ET.
Auctions are scheduled to be held on Thursday for $35 billion in 4-week bills, $30 billion in 8-week bills and $42 billion in 7-year bills.
– CNBC’s Jeff Cox contributed to this market report.
