2017.06.2022:33:00UTC+00U.S. Treasury Yields Slide as Traders Wager on Gradual Rate Hikes

U.S. government bond yields traded down as two Fed Reserve officials underlined that central bank's gradual strategy to hiking interest rates, while, taking note of the concerns regarding weak inflation and subdued growth in the economy.

Chicago Fed President Charles Evans said the U.S. central bank can postpone another hike until December and hold off in September another increase in interest rates. Meanwhile. Boston Fed President Eric Rosengren said the lower rates may be a norm in the market for a longer period of time.

Yield on the 10-year Treasury note declined 3.5 bps to 2.153 percent. The two-year note yield trimmed 1.6 bps at 1.348 percent. Yield on the 30-year bond lost 5.2 bps to trade at 2.735 percent, bringing the bond's yield to its lowest level since November 8.

The statements caused bond investors to become doubtful on how fast the Fed will hike rates in the future as it also looks to unwind its $4.5 trillion balance sheet this year.