Treasury yields rise on Fed’s more hawkish inflation and interest rate stance

Two rate hikes now expected in 2023

The minutes from the Federal Reserve’s FOMC meeting yesterday (16 June) have revealed a more hawkish stance on inflation and rate hike forecasts, sending 10-year treasury yields higher on the news.

The statement was adjusted to reflect the rising inflation in the US so far in 2021, which hit 5% in May year-on-year, with the headline inflation estimate for the year revised to 3.4%, up a full percentage point from the March estimate.