Treasury Yields Rise From Two-Month Low on Budget Views
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Treasuries fell, pushing 10-year note yields up from a two-month low, as optimism increased that the U.S. will avoid the automatic spending cuts and tax increases scheduled to occur at year-end.
Treasuries declined as an industry report showed sales of previously owned U.S. homes unexpectedly increased last month. President Barack Obama said yesterday he was confident the U.S. will avoid the fiscal cliff. A measure of volatility in government bonds dropped to the lowest level in more than five years and trading volume dropped to below-average levels. Stocks rallied the most in two months.