openfacechinesepoker| US Treasuries fall Traders look for clues about interest rate cuts from Fed minutes

Treasury prices fell after a sell-off in the U.K. bond market as traders prepared for an auction of the 20-year note and the release of minutes from the Federal Reserve's latest policy meeting.

Two-year Treasury yields rose two basis points to 4.openfacechinesepoker. 86%, while the 10-year bond yield was basically flat at 4.openfacechinesepoker.41%。Earlier, 10-year British government bonds surged 10 basis points after the UK released stronger-than-expected inflation data. Treasury yields remain high despite reports of an unexpected decline in existing U.S. home sales.

Markets were generally cautious ahead of the release of minutes from the Federal Reserve meeting on Wednesday afternoon, which will provide some clues about the timing of monetary policy easing. Many central bank officials this week advocated patience in cutting interest rates, saying they needed more evidence of cooling inflation before starting to relax policy. Shortly before the minutes were released, the Treasury Department also planned to sell $16 billion in 20-year bonds.

"The Fed minutes should continue to warn of any Fed easing," said Tom di Galoma, co-head of global interest rate trading at BTIG.openfacechinesepokerHe added that falling bond prices would "encourage buyers to bid aggressively at auctions."

Price pressure has long been a key data point for investors to judge the Fed's next move. But after a report last week showed inflation slowed for the first time in six months, the central bank's views on consumer prices came under closer scrutiny, as traders tried to understand whether the central bank was likely to cut interest rates this year. Similar situations also loom over themopenfacechinesepokerIn his region's markets, traders there postponed the first comprehensive rate cut until November after Wednesday's consumer price index report.

"The minutes are likely to strengthen the Fed's view that interest rates will remain high for a longer period of time and that the next step will still be to cut interest rates, although it will take time," said Jens Peter Sorensen, chief analyst at Danske Bank. "If we start cutting interest rates in 2024, the risk will be mainly over the five-year period," he said.

In the U.S., traders have lowered expectations that the Fed will cut interest rates twice this year, with swaps currently reflecting a 38 basis point cut compared with expectations of around 42 basis points last weekend.