US two-year yields climbed four basis points to 4.87%.

TVC:US02Y   US Government Bonds 2 YR Yield
The latest minutes had more hawkish undertones than the market was expecting.

"Participants at the meeting assessed it would take longer than previously anticipated to gain greater confidence in inflation moving sustainably to 2%."
"Various participants mentioned willingness to tighten policy further should risks to outlook materialize and make such action appropriate."
Though it largely repeated rhetoric used by FOMC officials after the latest policy meeting, US stocks still weakened while the dollar and Government bond yields strengthened

It is unlikely to make a material difference to the long term outlook for US policy, as is reflected by little change in US interest rate futures.

The Hawkish undertones can be justified given the lack of the April CPI data before the minutes were recorded.

The stock market fell during regular trading hours as the most recent Federal Reserve minutes indicated that officials are not in a hurry to lower interest rates. After fighting for direction for most of the session, the S&P 500 fell sharply as several Fed officials expressed concern about the extent to which policy is constraining the economy - but the minutes also indicated policy "was regarded as restrictive. Treasuries were under pressure, with shorter maturities underperforming.

US two-year yields climbed four basis points to 4.87%. The dollar rose, weakening the appeal of commodities priced in the currency.

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