(Bloomberg) — US Treasuries slipped following a selloff in the UK bond market as traders braced for a 20-year auction and the release of the minutes from the Federal Reserve’s latest policy meeting.
Yields on two-year notes rose two basis points to 4.86%, while 10-year yields were little changed at 4.41%. The move started after 10-year UK gilts surged 10 basis points following a stronger-than-expected inflation reading in Britain. Yields stayed up even after a report showed US existing home sales unexpectedly fell.
A cautious tone prevailed ahead of the Fed minutes Wednesday afternoon, which will offer some clue on the timing of the monetary policy easing. Central bank officials, including Governor Christopher Waller, this week advocated for patience on rate cuts, arguing that more evidence of cooling inflation is needed before easing begins. Shortly before the release of the minutes, the Treasury department is also set to sell…
