Forex-Dollar hovers near multi-month lows as Treasury yields slip; Fed minutes awaited

A selloff in U.S. Treasuries appeared to have paused amid a week light on economic data or other obvious catalysts. The yield on the benchmark U.S. 10-year Treasury note extended declines and was last at 4.686%, while that on the 30-year bond fell to 5.268% from its highest in nearly 20 years.

Market participants now turn to the Federal Reserve's release of minutes from the most recent meeting of its monetary policy-setting Federal Open Market Committee later in the day, looking for clues as to policymakers' views on interest rates.

Data released in the past few weeks have pointed to a softer U.S. economy, including unexpected job losses in July and mild inflation readings, leading investors to scale back rate-hike bets.

"If the Fed does not follow through with the rate hikes that are being discounted, the upside for bond yields should be very limited here," Harvinder Kalirai, chief global fixed income and currency strategist at Alpine Macro, said in a client webcast.