Treasury Action: there wasn't any strong reaction to the FOMC minutes
Treasury Action: there wasn't any strong reaction to the FOMC minutes as they didn't offer anything new. Yields remains biased slightly higher with the 2-year up 0.8 bps to 2.495%, with the 10-year 1.6 bps firmer at 2.650%. Wall Street is mixed, though the Dow has legged a bit higher with a 0.23% rally, while the S&P 500 and NASDAQ are either side of unchanged. The minutes did note the Fed's patient stance amid various risks, with some indicating the potential for a hike later this year if the economy performed well, as was expected. Others said it would take firmer than expected inflation to necessitate a hike (what Powell said in his presser). But in general, "many" were unsure what direction rate policy would take. There was also nothing concrete on the timing of the balance sheet runoff, other than perhaps later this year. The ultimate size was still indeterminate, but the Fed did say it was likely to return the balance sheet to primarily Treasuries.