After Fed minutes reveal worry about premature rate cuts, U.S. Treasury yields rise.

On Wednesday, U.S. Treasury yields rose after the Federal Reserve's meeting minutes indicated caution about rapidly lowering interest rates.

The yield on the increased by nearly 5 basis points to 4.323%, surpassing its previous high of 4.664% by about 5 basis points.

Yields and prices move inversely. One basis point equals 0.01%.

Officials indicated that they were not in a rush to lower borrowing costs, as they wanted to see more before easing policy. However, they also stated that rate hikes were likely finished.

The minutes indicated that participants believed the policy rate had reached its peak during the tightening cycle. However, they noted that they did not expect to lower the target range for the federal funds rate until they had more confidence that inflation was moving towards a sustainable 2 percent.

Prior to the January meeting, traders had been anticipating a high probability of rate cuts starting in March. In a post-meeting press conference, Fed Chairman Jerome Powell stated that this was unlikely, causing disappointment among investors. As a result, expectations have shifted to a June rate cut.

The release of economic data last week dashed hopes that rate cuts would occur sooner rather than later, as Fed officials have stated that their decision-making will be based on data.

The consumer and producer price indices for January exceeded expectations, indicating to investors that inflation may be more persistent than anticipated.