Treasuries Decline, Snap Two-Day Gain Before U.S. Report on GDP
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Treasuries fell, snapping a two-day rally that sent five-year yields to a record low yesterday, as economists predicted a government report today will show U.S. growth quickened at the end of last year.
The 30-year bond led the decline on speculation the Federal Reserve’s pledge to keep its benchmark interest rate low through late 2014 will spur inflation. Five-year inflation swaps, which allow investors to exchange fixed interest rates for returns equivalent to the consumer price index, slipped after rising yesterday to 2.26 percent, the highest level since August.