U.S. Treasury yields gave up some ground on Wednesday, ahead of the release of minutes from the latest Federal Reserve meeting and inflation data.
dipped by more than 2 basis points to 1.9946%. Yields move inversely to prices and 1 basis point is equal to 0.01%., the central bank confirmed its plans to start tapering its $120 billion monthly bond-buying program, so investors will be poring over the minutes for further details.
Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International, told CNBC's "Ahmed said that the Fed was experiencing a "communication dilemma." Ahmed explained that the Fed had tried to tell investors that the "tapering decision has nothing to do with rate hikes." However, he said that it was now becoming more difficult to maintain this argument with the continued rise in inflation, which "may not go back to those low levels that we had been used to."
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