Hughes, and pitchers Steven Jackson and Anthony Claggett were optioned to Triple-A Scranton-Wikes/Barre. Reliever Humberto Sanchez was optioned to Double-A Trenton, while right-handers Jason Johnson and Sergio Mitre were reassigned to the minor league camp.
After the Yankees beat the Detroit Tigers 4-3, catcher Francisco Cervelli was optioned to Trenton.
Hughes, who started the 2008 season in the Yankees rotation, had little chance to start this season after New York signed free agents CC Sabathia and A.J Burnett during the offseason. He did put himself in position to be called up in case of an injury by posting a 2.19 ERA in four spring training appearances.
"Hughes had a great camp," Yankees general manager Brian Cashman said. "He's in a good frame of mind. He knows he did great."
Johnson, coming back after treatment for a small cancerous tumor behind his right eye, was expected to compete for the long relief role. He appeared in two games.
"He's just behind," Yankees manager Joe Girardi said. "We talked about it with him. He went through a lot this spring and he should be proud of what we went through this spring. He need him stretched out as well because he could be a guy that we want to use during the season."
Kei Igawa has gotten into the long relief competition, along with Brett Tomko, Dan Giese and Alfredo Aceves, by throwing 12 2-3 scoreless innings.
"He's been efficient throwing strikes," Cashman said. "He's got good stuff, but his command hasn't been there. Now he's showing the good stuff."
In addition, teams looking for pitching help have been scouting Igawa.
Cashman called it a mistake to give Igawa a $20 million, five-year contract in December 2006.
"It has been so far," Cashman said. "Doesn't mean it will be. It gives you hope. He's a left-hander who had a lot of success in Japan. He's had success at the Triple-A level. Pitching in New York is a different animal. I'd bet you he would have success elsewhere, but here, I don't know."
Igawa appeared in just two games with the Yankees last season, going 0-1 with a 13.50 ERA. He had a 14-6 record at Scranton/Wilkes-Barre.