The 10-year U.S. Treasury yield dipped on Wednesday morning, ahead of the release of the Federal Reserve's minutes from its latest meeting.
The Fed is expected to publish the minutes from its June 15-16 meeting, at 2 p.m. ET on Wednesday. Investors will be poring over the minutes for any signs of the central bank's plans for monetary policy.
The Fed's minutes are expected to be dovish with the central bank looking for progress in the labor market and not worried that recent inflation will become a persistent trend. Slowing down the bond buying would be the Fed's first major retreat from the easy policies it put in place when the economy shut down last year.
The end of the Fed's $120 billion a month in Treasury and mortgage purchases would also signal that the central bank's next move could be to raise interest rates.
Andrew Sheets, chief cross-asset strategist at Morgan Stanley, told CNBC's "Squawk Box Europe" on Wednesday that the investment bank expected the Fed to announce a tapering of its asset purchases in September.
Sheets said Morgan Stanley expected the Fed to tighten its monetary policy "well ahead" of the European Central Bank and the Bank of Japan.
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Prior to this, the May Job Openings and Labor Turnover Survey is expected to be released at 10 a.m. ET.
An auction is scheduled on Wednesday for $35 billion of 119-day bills.
— CNBC's Tanaya Macheel contributed to this market report.