US treasury yields surge as Fed minutes underscore inflation fight

The minutes revealed officials saw a 50 or 75-basis-point hike in July as likely -- in line with Chair Jerome Powell’s remarks made after the last meeting. Picture: AP Photo/Alex Brandon

Treasury yields surged after minutes of the most recent Federal Reserve meeting underscored commitment to tighten aggressively to keep inflation from becoming entrenched.

The selloff in bonds intensified after the record from the Fed’s June meeting showed officials saw the possibility of “even more restrictive” policy should price pressures persist. The selling pressure extended after Wall Street closed with two-, and three-year yields -- among those that are more sensitive to central bank policy -- back to 3% for a rise of more than 18 basis points on the day.