US Treasuries rallied and the S&P 500 closed at a record high as investors weighed the release of the minutes from the Federal Reserve’s November meeting and the prospect of tariffs on products from Canada and Mexico.
The yield on the two-year Treasury was down 0.02 percentage points at 4.25 per cent on Tuesday afternoon, a one-week low.
Yields began to track lower following the release of the Fed minutes, which showed policymakers favoured a gradual pace of interest rate cuts.
The S&P 500 trimmed some of its gains following the release of the minutes, but recovered to close 0.6 per cent higher at a record. The Nasdaq Composite also climbed 0.6 per cent.
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