Economics
Treasuries Decline as Fed's Dudley Cites Growth in U.S., Europe
- New York Fed president calls economic news `mostly favorable'
- Bonds reverse earlier gains after yields followed oil lower
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Treasuries fell, reversing earlier gains, after Federal Reserve Bank of New York President William Dudley called U.S. economic news “mostly favorable” and cited improvement in Europe’s growth outlook.
The yield on the 30-year bond, the security most sensitive to inflation expectations, rose as Dudley said he’s confident that inflation will return to the Fed’s 2 percent target “as the labor market tightens further and the transitory factors that have held inflation down dissipate” in remarks posted on the Fed’s website. Yields rose as stocks climbed, with Morgan Stanley joining a slew of banks that exceeded profit estimates.