Economics
Treasuries Surge as Yellen Says Caution Needed in Raising Rates
- Fed chair says central bank would have scope to ease policy
- U.S. two-year note yield falls to lowest level in a month
Janet Yellen: Reading on U.S. Economy Somewhat Mixed
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Treasuries surged, with two-year note yields falling to the lowest level in a month, after Federal Reserve Chair Janet Yellen said caution in raising U.S. interest rates is “especially warranted" as the global economy presents heightened risks.
U.S. debt extended gains after Yellen made a case for running the economy hot in a speech to the Economic Club of New York, saying the central bank “would still have considerable scope” to ease policy if rates hit zero again. Treasuries had advanced earlier as crude-oil prices fell. A bond-market gauge of inflation expectations rose as investors bet on a faster pace of price increases.