US 10-year Treasury yield suffers biggest one-day drop since July 26

The US 10-year yield fell on Wednesday as the dovish Fed minutes, Trump's decision to disband key business advisory councils and a weak housing starts number boosted demand for the Treasuries. 

The benchmark yield fell by 4 basis points to 2.22%; its biggest one-day decline since July 26. The decline marked a failure to hold above the 100-DMA and 50-DMA levels. The daily chart also shows the falling top formation, which indicates further losses could be on the cards. 

Treasury prices rallied [yields dropped] after the Fed minutes showed the policymakers are increasingly wary about recent weak inflation and some called for halting interest rate hikes until inflation shows signs of life. 

The speculation that the Fed may be forced to slow down the pace of the monetary policy tightening pushed up the Treasury prices. 

The curve between the 10-yr yield and the 2-yr yield fell to 89 basis points from 92 basis points. The flattening of the yield curve is dollar bearish.