US Treasury bond yields are showing an increase, while market participants continue to analyze the minutes of the Fed's December meeting, published yesterday, which showed the "hawkish" attitude of the leaders of the Fed.
The yield on 10-year Treasury bonds grew by 3 basis points, reaching 1.733%, while the yield on 30-year bonds was 2.129% (+4.2 basis points).
The minutes indicated growing concern that the persistence of high inflation could push the central bank to more aggressive measures, especially if companies and consumers expect continued rapid price increases. The meeting participants also approved a plan to accelerate the winding down of asset purchases. Fed officials said that the reduction in the balance sheet is likely to begin sometime after the central bank starts raising interest rates. Market participants expect the Fed to start raising interest rates in March. Fed officials indicated that they forecast three rate hikes in 2022.
Investors are also waiting for data on the number of initial applications for unemployment benefits in the United States, which will be released at 13:30 GMT. Economists expect that at the end of last week, the number of initial applications amounted to 197 thousand compared to 198 thousand a week earlier.
Meanwhile, the December nonfarm payrolls report will be published tomorrow, which may affect the prospects for tightening the Fed's policy. Economists expect that nonfarm payrolls increased by 400 thousand.