Bonds Close Lower
Treasuries finished lower in price Tuesday after strong PPI numbers and Fedspeak about raising interest rates. PPI rose by 1.7%, higher than expectations, resulting in heightened speculation that the Fed will raise rates in December. Federal Reserve president Michael Moskow said the Fed will continue to raise rates at a breakfast meeting. With prices rising, inflation worries set in, lowering the value of bonds. Yields were up to 4.21% vs. yesterdays' close of 4.18%.