U.S. Treasury yields dropped on Thursday morning as the Federal Reserve’s latest minutes were digested by investors.

The benchmark yield 10-year Treasury noteThe rate of change ebbed by 4 basis points at 2.5659% at 4:15 am. ET. ET. 30-year Treasury bondThe ECB renounced 2 basis points and increased the rate to 2.60466%. 5-year rateMoved 6 basis points to 2.6381%. Yields are inversely related to price movements and 1 basis points is equivalent to 0.01%.

The minutes of the Fed meeting were released Wednesday afternoon and showed that U.S. central banks officials intended to reduce their balance sheet by $95 million per month. Fed officials indicated that they could see one or two 50-basis point interest rate hikes in the future.

The Fed’s hawkish tone saw the 10-year Treasury yield hit a three-year high. Investors worry that the Fed could increase its aggressive tightening to stop rising inflation and worsen economic growth.

This recessionary fear has been expressed in the inversions in Treasury yields. This is when investors sold out short-dated government bonds for long-dated debt.

Simon Harvey, head of FX analysis at Monex Europe, told CNBC’s “Squawk Box Europe” on Thursday that the amount the Fed was withdrawing from the Treasury market wasn’t necessarily “too aggressive.”

At the Fed’s next meeting, he expected to see two 50-basis point interest rates.

Harvey indicated that the Fed will be reviewing whether this is enough to support inflation expectations. If not, Harvey suggested it would then consider continuing to raise rates in 25-basis point increments.

Harvey suggested that this might not be enough to bring down inflation. Harvey also mentioned the possibility of a “reassessment with a higher termin rate,” which could serve as the last point for Fed rate rises.

The Labor Department will release at 8:30 am Thursday the initial claims for unemployment filed in the week ending April 2. ET. According to economists, 200,000 unemployment insurance claims were filed in the last week.

Auctions for $35 billion (4-week) bills and $30 trillion (8-week bill bills are planned.