BOND REPORT

Yields on 10-year Treasury notes and 30-year Treasury bonds climbed to levels last seen in 2019 on Thursday, though rates were broadly mixed, as investors assessed Federal Reserve officials' tentative plans to begin shrinking the central bank's almost $9 trillion balance sheet.

The 2-year rate fell on the day, which steepened the spread between 2- and 10-year yields to as much as 22 basis points.

What are yields doing?

The yield on the 10-year Treasury note rose 4.8 basis points to 2.654% from 2.606% at 3 p.m. Eastern on Wednesday. That's the highest level since March 6, 2019, based on 3 p.m. yields, according to Dow Jones Market Data.

The yield on the 30-year Treasury bond BX:TMUBMUSD30Y rose 5.7 basis points to 2.688% from 2.631% on Wednesday. That's the highest since May 28, 2019.

The 2-year Treasury note yield declined 3.8 basis points to 2.462% versus 2.5% Wednesday afternoon.

What's driving the market?

Long-dated yields continued to climb on Thursday, a day after minutes of the Federal Reserve's March meeting were released.

The summary showed that Fed officials want to reduce the balance sheet by up to $95 billion a month after a three-month phase-in. The process could potentially begin in May, but policy makers have yet to make a final decision, the minutes said.