Treasuries Decline as Fed Says Growth at Insufficient Pace
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Treasuries fell as the Federal Reserve maintained a $600 billion bond-purchase program while saying the pace of economic expansion is insufficient to lower unemployment, sparking concern inflation will be rekindled.
Government securities dropped earlier after sales of new homes rose more than forecast in December and the U.S. sold $35 billion of five-year notes. Ten-year Treasury Inflation-Protected Securities show bondholders expect the consumer price index to increase 2.28 percentage points a year on average over the life of the debt, compared with a 1.7 percent rise forecast for this year by economists surveyed by Bloomberg News.