Treasury yields advanced on Wednesday as investors monitored debt ceiling updates and weighed a summary of the Federal Reserve's monetary policy meeting earlier this month.
The yield on the 2-year Treasury was up about 8 basis points at 4.361%, while the 10-year Treasury was climbed nearly 4 basis points to 3.736%. Both briefly touched levels last seen in March on Tuesday.
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WATCH HEREYields and prices move in opposite directions and one basis point equals 0.01%.
Investors considered continued debt ceiling discussions and searched for signs of progress toward a resolution.
House Speaker Kevin McCarthy during a late-morning press conference that negotiators are struggling to agree on spending levels, but reiterated his confidence that both negotiating teams would reach an agreement.
The U.S. risks defaulting on its debt as soon as June 1 if a deal is not struck, Treasury Secretary Janet Yellen reaffirmed earlier in the week.
Elsewhere, investors weighed the outlook for Fed interest rate policy. The Fed minutes showed "uncertainty" from participants about whether to increase rates for an 11th time at its June meeting.
Money Report
There appeared to be two camps in the Fed now, according to the minutes. One group that contained "some" members judged that progress in reducing inflation was "unacceptably slow" and would necessitate further hikes. The other, backed by "several" FOMC members, saw slowing economic growth in which "further policy firming after this meeting may not be necessary."
The minutes do not identify individual members nor do they quantify "some" or "several" with specific numbers. However, in Fed parlance, "some" is thought to be more than "several."
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SIGN UP Correction: In Fed parlance, "some" is thought to be more than "several." An earlier version misstated the difference.
