Treasury futures contracts fell after Federal Reserve Chair Janet Yellen said the U.S. central bank is on track to raise interest rates this year.

Futures for December delivery dropped 7/32, or $2.19 per $1,000 face amount, to 127 28/32 in electronic trading.

Yellen is trying to prepare market participants for the rate increase, said Kazuaki Oh’e, a debt salesman at CIBC World Markets Japan Inc. in Tokyo.

Before it's here, it's on the Bloomberg Terminal. LEARN MORE