Pursuits
Treasuries Decline as Fed Officials Say Rates May Rise in April
- Lockhart, Williams signal further tightening of policy
- Bond-market inflation gauge climbs to highest since August
This article is for subscribers only.
Treasuries fell, lifting 10-year yields by the most in more than a week, as two Federal Reserve officials suggested the central bank may raise interest rates as soon as next month.
San Francisco Fed President John Williams and Atlanta Fed President Dennis Lockhart said policy makers may raise rates as soon as their April 26-27 meeting. The gap between yields on 10-year notes and equivalent inflation-indexed securities, known as the break-even rate, rose to the highest since Aug. 11, according to data compiled by Bloomberg. It suggests inflation will average about 1.65 percent annually over the next decade, approaching the Fed’s 2 percent target.