US Treasury yields jump after Fed minutes revealed.. rising 15 bps

US Treasury yields rose after the Federal Reserve’s recent meeting, on Wednesday, which emphasized a commitment to aggressive monetary policy to prevent inflation from becoming entrenched.

The treasury selling increased after the Fed’s minutes indicated that officials see the possibility of “restricting monetary policy more in the event of continued price pressures,” according to the Al-Arabiya website.

US two-year yields – among those most sensitive to central bank policy – jumped 15 basis points to nearly 2.97%, after falling as much as 6 basis points earlier on Wednesday.

The benchmark 10-year rate surged 12 basis points to 2.93%, rebounding from an intraday low of 2.74%.

The minutes showed that officials likely saw a rise of 50 or 75 basis points in July, in line with Fed Chairman Jerome Powell’s comments after the last meeting. Policymakers raised interest rates by 75 basis points to a higher range of 1.5 percent in mid-June, the largest increase since 1994.

A surge in bonds earlier on Wednesday briefly sent the 30-year yield below 3% for the first time since May.

He explained that this means the central bank will likely raise rates by 75 basis points in July and 50 basis points in September, “unless really bad things start to happen or something happens,” referring to a recession.