Bonds dip after Fed minutes released

NEW YORK (CNNMoney.com) -- Bonds tumbled after the release of the Federal Open Market Committee meeting minutes indicated more interest rate hikes may be needed to fight inflation. The dollar slipped slightly versus the euro but rose a bit against the yen.

The benchmark 10-year note lost 3/32, or 94 cents on a $1,000 note, to yield 4.74, slightly up from 4.73 percent Tuesday.

Federal Reserve Chairman Ben Bernanke

The 30-year note fell 4/32, or $1.25 on a $1,000 note, to yield 4.91, unchanged from the previous session. Bond prices and yields move in opposite directions.

The five-year note slipped 3/32, yielding 4.65 percent, while the two-year note lost one tick at 4.73 percent.

The Federal Reserve released the minutes of its most recent meeting on March 20-21, which suggested more monetary tightening policies may be needed.

Policy-makers agreed higher interest rates could possibly tame inflation.

In March, the Fed held interest rates steady at 5.25 percent and said inflation was a main concern.

Policy-makers also felt surprisingly weak business investment and the rise of delinquencies in subprime mortgage markets were risks to economic growth.

Before the release of the minutes, Fed Chairman Ben Bernanke spoke at the Global Economic Policy Forum at New York University, saying light regulation on hedge funds is working well and seem appropriate because of the benefits such funds provide to the financial system.

In currency trading the euro bought $1.3427 Wednesday, slightly up from $1.3425 the day before. The dollar bought ¥119.30, up from ¥119.26 late Tuesday.

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Crude steady ahead of inventory report