The 30-year Treasury yield rose to 4.983% on Wednesday, briefly trading above the key 5% level. This happened as investors looked at the minutes from the Federal Reserve’s policy meeting earlier this month. The minutes showed that Fed officials thought a careful approach to monetary policy was needed because of economic uncertainty.
They also said the central bank could face “difficult tradeoffs” if inflation goes up. Kevin Hassett, the director of the U.S. National Economic Council, made comments that suggested more economic deals could be coming.
Treasury yield near critical point
This boosted investor optimism. Other important economic data will be released later this week. The gross domestic product growth rate comes out on Thursday morning.
The personal consumption expenditures index, which is the Fed’s preferred way to measure inflation, will be published on Friday morning. Investors will watch these numbers closely for more information about how the U.S. economy is doing.
