Bonds stumble on Fed minutes
Treasury prices slip after Federal Reserve minutes reveal uncertainty about future of rate hikes; greenback climbs.

NEW YORK ( - Bond prices turned sharply lower Wednesday after the Federal Reserve released the minutes from its latest policy meeting, but gave no indication about what its next move would be when it meets again in June.

The dollar gained against the euro and the yen.

The benchmark 10-year note fell 11/32 to 100-10/32 to yield 5.12 percent, up from 5.08 Tuesday.

The 30-year bond slipped 14/32 to 89-7/32, yielding 5.21 percent, up from 5.18 the previous session. Bond prices and yields move in opposite directions.

The five-year note fell 8/32 to yield 5.03 percent, while the two-year note dipped 4/32, yielding 5.04 percent.

Treasury investors were spooked following the release of the minutes from the May 10 meeting, which revealed the central bank was uncertain about whether it would continued to raise interest rates because of risk to economic growth and inflation.

Investors were hoping for a hint about whether the central bank's policy-makers will pause in its monetary tightening campaign when they meet June 28 and 29.

Uncertainty over the Fed's next move has kept the market jittery in recent weeks, with investors focusing more on economic data that could give a clue to the next rate decision.

"Investors want a sign on whether the Fed is going to take a pause in their rate hikes. They're trying to peek at the Fed's cards," Andre Bakhos, president of Princeton Financial Group in Princeton, N.J., told Reuters.

The federal funds rate is currently at 5 percent.

In currency trading, the euro bought $1.2824, down slightly from $1.2866 Tuesday. The dollar traded at 112.47, up slightly from 112.22 in the previous session.

-- from staff and wire reports.


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