U.S. Treasury yields pulled back slightly on Wednesday from multi-decade highs reached the previous day. The 10-year yield fell 2 basis points to 4.686%, while the 30-year yield retreated to 5.272% after hitting a 19-year high of 5.33% on Tuesday. The U.S. fiscal deficit jumped to $432.3 billion in July, pushing the year-to-date shortfall to nearly $1.8 trillion, with interest payments on the nearly $40 trillion national debt costing the Federal government about $1.2 trillion this year. The latest FOMC meeting minutes are due for release on Wednesday afternoon, with investors looking for more details on divisions within the central bank following three dissents at the July meeting calling for rate hikes. Global bond yields also rose, with Japan’s 10-year yield reaching its highest level in three decades and German 30-year bund yields hitting their highest point since 2011.
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