Treasuries Tumble as Fed Cites Recovery Signs, Maintains Easing

Treasuries plunged, pushing the 30-year bond yield to a seven-month high, as Federal Reserve policy makers said the U.S. recovery is continuing and maintained a $600 billion program of debt purchases.

The extra yield investors demand to hold 10-year notes over 2-year debt was the highest since April on speculation President Barack Obama’s agreement to extend tax cuts will win passage in Congress, supporting growth and stoking inflation. Retail sales rose more than forecast, and producer prices increased the most in eight months, government reports showed.