The yield on US government bonds on Thursday was mostly stable, as investors adopted the latest minutes of a meeting of the Federal Reserve.
The yield on the 10-year reference government securities fell slightly to 2.74%. Yields on 30-year treasury bonds rose 1 basis point to 2.974%. Yields are moving back in price and 1 basis point is equal to 0.01%.
The Fed released the minutes of its meeting on Wednesday afternoon, which shows that the central bank is ready to continue with multiple interest rate increases of 50 basis points, potentially to go beyond what is expected from the market.
The Federal Open Market Committee also said the central bank could move beyond its “neutral” political stance to “restrictive” territory.
Yogi Dewan, CEO and founder of H Potassium Asset Management, told CNBC’s Squawk Box Europe on Thursday that the Fed’s minutes were “far fewer hawks than the market expected, and we’ve always seen the Fed’s expectations of rising interest rates.” as overpriced “.
For this reason, Duane said his company expects fewer interest rate hikes amid slowing economic growth, but noted that “the problem is that you still do not have economic data in front of you to justify this. [in terms of how] will take place over the next three to six months. “
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Government bond yields rose slightly on Wednesday after the release of minutes as US stocks rose.
A second estimate of US gross domestic product growth for the first quarter is due to be released on Thursday at 8:30 a.m. ET.
The number of unemployment applications filed during the week ending May 21 should also come out at 8:30 a.m. ET.
Expected data on home sales for April are scheduled for publication at 10 am ET.
– Jeff Cox of CNBC contributed to this market report.
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