U.S. 2-Year Yields Reach Highest Since 2011 as Fed Meeting Looms
- Traders get `cold feet' before Fed begins policy meeting
- Futures show 28 percent chance Fed will raise rates this month
Two Reasons the Fed May Hold Off on a Rate Hike
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Treasuries tumbled, lifting the two-year note yield to the highest since April 2011, as gains in U.S. retail sales prompted investors to retreat from the securities that would be most affected if the Federal Reserve raises interest rates.
Sell orders in two- and five-year Treasury futures helped accelerate the move higher in yields amid investors’ concern that the Fed may raise rates as soon as Thursday for the first time since 2006. Yields rose the most in almost three weeks after data showed retail sales increased 0.2 percent in August while July’s gain was larger than previously reported. The figures signal consumers may be looking past recent financial-market volatility.