Treasury yields nudged higher as investors await Fed meeting minutes

U.S. Treasury yields edged higher on Wednesday as investors anticipated the Federal Reserve’s meeting minutes and key inflation data.

At 2:48 a.m. ET, the 10-year Treasury yield rose over 2 basis points to 4.075%, and the 30-year Treasury bond yield was up 1 basis point to 4.7%. The 2-year Treasury note yield was 1 basis point higher at 3.453%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Investors will be keeping an eye out for the FOMC meeting minutes, which will be released at 2 p.m. ET, offering insights into policymakers’ decision-making at the Fed’s January meeting.

The central bank held its key interest rates steady in January at a range between 3.5% and 3.75%, in line with traders’ expectations.

Fed Chairman Jerome Powell said at the time that the committee would make decisions about rates “meeting by meeting” and based on incoming data.

Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets, said in a note on Tuesday: “We’ll be watchful of the discourse between the hawks and doves as the Committee held rates steady for the first time since restarting the process of normalization in September 2025.”

He added: “The release will be informative insofar as the Fed’s reaction function to the incoming data, as well as providing some detail regarding the underlying motivation not to cut rates in January.”

Investors are also looking ahead to the release of the personal consumption expenditure price index, the Fed’s preferred inflation gauge, on Friday, which they will provide further insight into the state of the economy.