The yield of the US Treasury fell on Thursday morning when investors digested the minutes of the last meeting of the Federal Reserve and monitored the development of the Russian-Ukrainian crisis.
Yield per benchmark A 10-year Treasury note dropped 4 basis points, falling to 2.003% at 7:45 a.m. ET. Yields on 30-year treasury bonds decreased by 4 basis points to 2.32%. Yields are moving back in price, and 1 basis point is 0.01%.
Fed Minutes of the January meeting, released Wednesday afternoon, offered an update from the central bank. Protocols indicated that the Fed was likely to start raising interest rates soon, and outlined their plans to withdraw trillions of dollars of bonds from its balance sheet.
Charlie Ripley, senior investment strategist at Allianz Investment Management, said Wednesday that Fed protocols show that “a faster rate of gain is justified compared to the last cycle of campaigns.”
“In general, there was nothing in the protocols to suggest that the Fed would be more aggressive than what the market had already assessed,” he added.
Meanwhile, geopolitical tensions continued to be the focus of investors. NATO officials blamed Russia on Wednesday increasing the number of its troops on the border with Ukraine a day after Moscow said it had begun withdrawing some of its troops.
As for economic data releases to be released on Thursday, figures on building permits and housing start in January are to be released at 8:30 a.m. Eastern Time.
The number of initial unemployment claims filed during the week ending Feb. 12 must also be filed at 8:30 a.m. ET.
Auctions are scheduled for Thursday for $ 50 billion in 4-week bills, $ 40 billion in 8-week bills and $ 9 billion in 30-week inflation-protected securities.
– Jeff Cox and Chloe Taylor of CNBC contributed to this market report.