U.S. Treasury yields ticked higher on Wednesday as investors digested meeting minutes from the Federal Reserve and geared up for inflation data.
The 10-year Treasury yield rose nearly 4 basis points to 4.073%. The 2-year Treasury was around 4 basis points higher at 4.022%.
Yields move inversely to prices. One basis point equals 0.01%.
Yields edged higher as minutes from the Federal Reserve's last meeting showed some internal disagreement over the size of the rate cut, with most central bank committee members ultimately supporting a half-point reduction.
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Rates were also higher even after a well-received 1 p.m. auction.
The 10-year Treasury yield's jump to 4% on Monday came after last week's stronger labor market readings, and follows on from the Federal Reserve's rate cut last month. In recent days, it has hit its highest level in more than two months.
The rebound in rates has been attributed mostly to a resetting of rate-cutting expectations. Rising oil prices have been attributed to geopolitical tensions in the Middle East. Additionally, a stimulus plan in China is also raising concerns that inflationary pressures will return, perhaps driving some investors away from bonds and, in turn, raising yields.
Money Report
"The technicals indicate the Treasury market is decidedly oversold – a read that is reinforced by the daily and weekly stochastics at extremes," said Ian Lyngen, head of U.S. rates strategy at BMO. "We continue to view 4-handle 10s as a buying opportunity in light of the prevailing macro and geopolitical risks."
More inflation news due out this week will also inform next month's decision. That includes the September consumer and producer price index readings slated for Thursday and Friday, respectively.
— CNBC's Lisa Kailai Han, John Melloy and Karen Gilchrist contributed to this report.
