Treasury yields climbed on Wednesday as investors looked to the release of U.S. Federal Reserve meeting minutes, which could provide clues about future monetary policy.
The benchmark 10-year Treasury yield was trading at around 3.7650% at around 3:40 a.m. ET after rising by less than a basis point. The yield on the 2-year Treasury was up by around two basis points to 4.5372%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Investors are hoping to gain further insights into whether the Fed will slow interest rate hikes and what it will take for them to be paused entirely when the central bank’s November meeting minutes are released on Wednesday.
Speaking at a conference organized by the Central Bank of Chile on Tuesday, Kansas City Fed President Esther George said interest rates might still have to go higher as the Fed works to lower inflation and constrain consumer demand.
George’s comments echoed the tone struck by her colleagues earlier in the week, which broadly indicated that rates would continue to rise, but potentially at a slower pace.
Concern about the pace of rate hikes leading the U.S. economy into a recession has spread among traders. They will therefore be scanning durable goods orders and new home sales data, due to be released on Wednesday, for clues about the state of the economy.
Markets will stay closed on Thursday for Thanksgiving and open for a half-day on Friday.