Economics
Treasuries Plunge as Economic Growth, Inflation Exceed Forecasts
- Commerce Department revises fourth-quarter GDP data higher
- Yield on two-year note rises by the most since December
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Treasuries fell after a line-up of above-forecast economic data prompted traders to re-evaluate their views on the Federal Reserve’s interest-rates path.
Yields on two-year notes, seen as the most sensitive to Fed policy expectations, surged by the most since December as traders ratcheted up bets on the pace of rate increases. That helped push the gap between yields on two-year and 10-year notes to the narrowest since 2007.