U.S. Treasury yields were lower on Wednesday after most Federal Reserve officials indicated they see rate cuts coming.
The 10-year Treasury yield was down nearly 8 basis points at 4.342%, and the 30-year bond yield was 7 basis points lower to 4.873%. The 2-year Treasury yield was down 5 basis points at 3.86%.
One basis point is equal to 0.01%. Yields and prices move in opposite directions.
Minutes released on Wednesday afternoon from the Federal Reserve’s June meeting showed that while policymakers voted unanimously to hold rates steady for now, there was also a growing divide on how policy should proceed going forward.
“Most participants assessed that some reduction in the target range for the federal funds rate this year would likely be appropriate,” the minutes stated, adding that economic growth and hiring could weaken from here.
Elsewhere, investors were also monitoring the latest developments on the tariff front.
On Wednesday, President Donald Trump announced new U.S. tariff rates on goods from at least six more countries, including the Philippines and Iraq. Earlier this week, Trump had announced steep new tariffs on 14 other countries, including South Korea, Japan, Malaysia, South Africa and Myanmar.
The letters, posted by Trump on social media, showed tariff rates ranging from 20% to 40% and set to take effect on Aug. 1.
On Tuesday, the president posted on Truth Social that there would be no change or extensions granted to the Aug. 1 date.
“That’s a shift in tone from Trump’s own comments on Monday evening, as Trump had said that the August 1 date was ‘not 100% firm’, and investors had been hopeful that ongoing negotiations and trade deals could avoid that. So it’s a clear hardening up of the rhetoric,” Deutsche Bank analysts said in a note.
Additionally, Trump announced further levies on Tuesday, including 50% tariffs on copper imports, and threatened 200% tariffs on pharmaceuticals imported into the U.S.
— CNBC’s Jeff Cox contributed to this report.
