By Daniel Kruger 

U.S. government bond prices rose Thursday as investors reassessed the economic landscape after the release of dovish minutes from the Federal Reserve's May meeting and new tariff proposals from President Donald Trump.

The yield on the benchmark 10 year Treasury note fell to 2.964%, according to Tradeweb, from 3.003% Wednesday. Yields fall as bond prices rise.

Yields fell below 3% Thursday, a day after minutes from the Fed's latest meeting showed the central bank plans to stay on a gradual path of rate increases even if inflation meets its target. The minutes also show officials are still unsure over the degree to which low unemployment will fuel faster wage increases or firmer price pressures.

Muted inflation is good for the value of government bonds because it helps maintain the purchasing power of their fixed payments and can keep the Fed from raising interest rates.

Yields were also pushed lower on investor concerns that Mr. Trump's push to impose new tariffs on auto imports could lead to slower growth by inviting retaliatory measures from Germany, Japan and South Korea, while increasing uncertainty about how these measures might affect the economy. The U.S. Commerce Department launched a probe Wednesday into whether it could raise tariffs to up to 25% on auto imports on the basis of national security.

Some investors also sought safe assets after Mr. Trump announced that he had called off a meeting with North Korean leader Kim Jong Un scheduled for next month at which the two were expected to discuss ending North Korea's nuclear program in return for rolling back sanctions.

"All these things are spooking" investors, said Thomas Roth, managing director in the rates trading group at MUFG Securities Americas Inc. "With all these things hanging out there, you don't know what the effects will be."

Meanwhile, the Treasury is scheduled to sell $30 billion of seven-year notes Thursday afternoon, in the last of four note auctions this week totaling $115 billion.

Write to Daniel Kruger at Daniel.Kruger@wsj.com

(END) Dow Jones Newswires

May 24, 2018 11:59 ET (15:59 GMT)