May 26 (Reuters) - U.S. 10-year Treasury yield fell to its lowest level since April after Federal Reserve minutes suggested the Fed could pause once the policy rate is back to its neutral level.
"It signals that the Fed could be open to a pause at the September meeting as Atlanta Fed President Bostic suggested," MUFG analysts said.
It "might make sense" for the Fed to pause further interest rate hikes following expected half-point rate increases over the next two months, Bostic said on Monday.
"The committee could pause once the policy rate is back to neutral, which the FOMC estimates is in the range of 2-3%," according to Unicredit analysts.
The yield on 10-year Treasury notes slipped 4 basis points to 2.706% its lowest since April 14. (Reporting by Stefano Rebaudo, editing by Saikat Chatterjee) ;))