Longer-dated US yields edge up after data, Fed minutes eyed

economictimes.indiatimes.com:

Treasury yields were modestly higher on Wednesday after a softer-than-expected reading on U.S.-made goods and ahead of the release of the minutes from the Federal Reserve's latest policy meeting in June. Factory orders rose 0.3% in May, shy of the estimate of economists polled by Reuters for a 0.8% increase and matching the revised 0.3% rise in the prior month. The manufacturing sector has struggled under the Fed's rapid rate hike cycle.

The yield on 10-year Treasury notes was up 3 basis points to 3.888%. Investors will also eye the scheduled 2 p.m. EDT (1800 GMT) release of the minutes from the Fed's June policy meeting at which the central bank paused its rate hike cycle.

The minutes are likely to show an active debate among policymakers who still on balance appear inclined to support more action to tame inflation. «While it was a consensus pause — everyone agreed in the June meeting to pump the brakes here — I think there is still clearly a tilt, a hawkish tilt among the FOMC,» said Jason Ware, chief investment officer, Albion Financial Group in Salt Lake City, Utah, referring to the Federal Open Market Committee. «If you ask the average FOMC member, the view is that we're still going to see a couple more hikes here before year-end,» Ware added.

The yield on the 30-year Treasury bond was up 2.2 basis points to 3.899%. Expectations for a 25 basis point hike from the Fed at its meeting on July 25-26 are at 88.7%, according to CME's FedWatch Tool, up from 81.8% a week ago. A closely watched part of the U.S.