Fed Minutes Contribute To Modestly Lower Close By Treasuries

(RTTNews) - Treasuries moved to the downside in response to the minutes of the latest Federal Reserve meeting, ending Wednesday's trading modest lower.

Bond prices came under pressure following the release of the minutes but regained some ground going into the close. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.1 basis points to 2.426 percent.

The ten-year yield closed higher for the third consecutive session, climbing further off the one-year closing low set last Friday.

The continued weakness among treasuries came following the release of the minutes of the Fed's monetary policy meeting in late July.

At the meeting, the Federal Open Market Committee voted 9-1 to maintain its current policy of very gradually withdrawing stimulus from the U.S. economy.

Fed forecasts show most officials expect to start raising rates next year, but the minutes said some members are now making the case for a "relatively prompt" rate hike.

However, the majority of Fed voters think the central bank should be patient before hiking rates, as slack in the labor market remains a concern. The jobless rate rose to 6.2 percent in July.

Peter Boockvar, managing director at the Lindsey Group, said, "There was nothing in the minutes that was going to tell us when rates would go up, but the tone was certainly a reminder that it may happen well before and to a higher level than many think sometime in 2015."

While reaction to the Fed minutes could continue to impact trading on Thursday, traders are also likely to keep an eye on reports on weekly jobless claims, existing home sales, and Philadelphia-area manufacturing activity.