2018.02.2222:37:00UTC+00US 10-Year Treasury Yield Pulls Back from 4-Year Peak

U.S. government debt yields dropped from multi year highs notched on Wednesday after the Federal Reserve's latest minutes showed that the central bankers expect stronger economic expansion and inflation.

As of the latest reading, the yield on the benchmark 10-year Treasury note was slightly lower at 2.921 percent, down from a four-year peak of 2.95 percent topped Wednesday. The yield on the benchmark 2-year Treasury note moved below a nine-year peak at 2.254 percent.

Investor anxiety emerged on Wednesday, after minutes from the Federal Reserve's latest meeting showed that members were comfortable increasing rates multiple times throughout this year. Adding to the pressure on debt, the Federal Open Market Committee's meeting happened ahead of two major inflation indicators: wage growth in the January jobs report and an uptick in the CPI.

The central banking news consequently put markets on edge, with U.S. government debt yields rising sharply following the document's release, and Wall Street reversing gains, to finish the session down in the red.

The Treasury Department auctioned $29 billion in seven-year notes at a high yield of 2.839 percent. The bid-to-cover ratio, an indicator of demand, was 2.49. Indirect bidders, which include major central banks, were awarded 62.2 percent. Direct bidders, which includes domestic money managers, bought 15.6 percent.