MARKETSCOPE : Treasury bond prices sank on Tuesday, amid the release of unsurprising Federal Open Market Committee (FOMC) minutes.
The benchmark 10 year notes yielded 4.56%, compared to yield of 4.52% at the previous session's close. The 30 year yielded 4.53% from 4.51%. Yields rise when prices fall.
At around 2 pm Eastern Standard Time the Fed released the minutes of its Jan. 31 policy meeting. Among other things, the Federal Open Market Committee (FOMC) members had said higher than desirable inflation figures "reinforced" the potential for more interest rate tightening, according to the research firm Action Economics.
"The comments certainly are consistent with (Federal Reserve Chairman) Bernanke's recent testimony (to Congress)," Action Economics says. They think the probability of a 5% rate by the end of the first half of the year is up to just over 90%. The Federal Open Market Committee meets again March 27 and 28. Interest rates currently stand at 4.50%.