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NEW YORK (AP) - Treasurys fell slightly Tuesday after the release of a Federal Reserve document suggesting rate hikes are nearing their end.
According to the minutes from the Jan. 31 Federal Open Market Committee meeting, Fed officials, while worried about upside risks to inflation, said that "the stance of policy seemed close to where it needed to be given the current outlook." But they added, in a familiar refrain, that "some further policy firming might be needed to keep inflation pressures contained and the risks to price stability and sustainable."
For most market participants, the minutes confirmed what they already knew: the Fed has a modest amount of rate hikes left in it, and how that tightening plays out will be reliant on economic data. The lack of surprise stripped from the market any catalyst to trade dramatically, leaving the market very close to the same negative tone that dominated the day.
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