US Treasury yields and the dollar retreat in tandem as the market pauses after selloff, focus turns to Federal Reserve meeting minutes

⑴ After Tuesday's bond market sell-off, investors took a brief respite ahead of the release of the Federal Reserve meeting minutes. Both U.S. Treasury yields and the U.S. dollar index weakened, with the dollar falling toward recent lows.⑵ According to strategy institutions, as U.S. Treasury yields retreated to some extent, the dollar came under additional pressure, and weaker monetary policy expectations may keep the dollar under further pressure.⑶ Interest rate market pricing shows that the market currently expects about a two-thirds probability that the Federal Reserve will keep policy rates unchanged at the September meeting, with rate cut expectations still not strong.⑷ Meanwhile, longer-term U.S. Treasury yields remain hovering near multi-year highs, with ongoing concerns over fiscal spending providing continued support for the long end. The 10-year yield edged down to around 4.697%, and changes in the yield curve form will depend on further clues from today's meeting minutes.