Treasury Five-Year Note Yield Falls to Record on Fed Rate Pledge
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Treasuries rallied, pushing the five-year note yield to a record low, after Federal Reserve officials unexpectedly said their benchmark interest rate will stay low until at least late 2014.
U.S. government debt pared gains after the release of forecasts by Federal Open Market Committee participants for the first time showed three of the 17 members said the Fed should raise rates in 2012 and three said tighten in 2013. The Treasury sold $35 billion of five-year notes at higher-than-average demand prior to the disclosure of the forecasts.