2017.11.2223:35:00UTC+00U.S. Yields Slide as Fed’s Concerns About Subdued Inflation Persist

Prices on U.S. government bonds advanced, causing yields to retreat, after the minutes of the Oct. 31-Nov. 1 meeting of the Federal Reserve showed policymakers are worried about the weak inflation, affecting the prospects for rate hikes in 2018.

The 10-year Treasury note yield edged down by 4.1 basis points to 2.320 percent. Meanwhile, the yield on the two-year note declined by 3.8 basis points to 1.735 percent. The yield on the long bond or the 30-year Treasury note fell by 2.1 basis points to 2.741 percent.

On Thursday, financial markets will be closed for the Thanksgiving Day holiday, while stock and bond markets are slated for an early close on Friday.

The readout from the November meeting of the Federal Reserve OPen Market Committee indicated a December rate hike continues to be on its planned track, a move that is highly expected by markets. Before the release of the minutes, traders in the fed fund futures market placed a 97 percent probability of a rate hike in December.

However, the overall perception of the meeting's talks were mostly dovish as some officials voiced their concern regarding inflation remaining below 2 percent for longer than their current expectations.