TREASURIES-Yields fall after Fed meeting minutes

    (Recasts with Fed meeting minutes)
    By Karen Brettell
    NEW YORK, Aug 18 (Reuters) - U.S. Treasury yields fell on
Wednesday after minutes from the Federal Reserve's July meeting
showed that Fed officials felt the employment benchmark for
decreasing support for the economy "could be reached this year,"
but had not yet been satisfied.
    "Most participants anticipated that the economy would
continue to make progress toward those goals" and that the
standard "could be reached this year," but there was
disagreement over how soon the Fed should wait to reduce bond
purchases.
    "There wasn't a lot in there," said Guy LeBas, chief fixed
income strategist at Janney Montgomery Scott in Philadelphia.
"The financial, market and economic support reasons for
continuing bond purchases are fading a little bit with
normalizing inflation and a stronger labor market, and so it
stands to reason that the policymakers will begin reducing those
purchases relatively soon."
    Benchmark 10-year notes were last 1.271%, after
rising to a session high of 1.300% before the minutes were
released.
    Many analysts and economists expect the Fed to announce a
taper in December, with bond purchase reductions likely to begin
in early 2022.
    "It's clear from the minutes that the Fed isn't ready to
start tapering yet, but they are leaning towards making an
announcement by the end of the year at the latest," Chris
Zaccarelli, Chief Investment Officer for Independent Advisor
Alliance, said in a note.

      August 18 Wednesday 2:44PM New York / 1844 GMT
                               Price        Current   Net
                                            Yield %   Change
                                                      (bps)
 Three-month bills             0.06         0.0608    -0.013
 Six-month bills               0.05         0.0507    -0.002
 Two-year note                 99-210/256   0.2175    0.002
 Three-year note               99-214/256   0.4303    0.005
 Five-year note                99-72/256    0.7733    0.009
 Seven-year note               99-170/256   1.0502    0.010
 10-year note                  99-204/256   1.2717    0.014
 20-year bond                  107-60/256   1.8123    0.000
 30-year bond                  101-224/256  1.9175    -0.002

   DOLLAR SWAP SPREADS
                               Last (bps)   Net
                                            Change
                                            (bps)
 U.S. 2-year dollar swap         9.25         0.00
 spread
 U.S. 3-year dollar swap        10.00        -0.25
 spread
 U.S. 5-year dollar swap         8.25         0.25
 spread
 U.S. 10-year dollar swap        1.00         0.25
 spread
 U.S. 30-year dollar swap      -28.50         1.25
 spread


 (Reporting by Karen Brettell; Editing by Will Dunham and Nick
Zieminski)

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