Treasuries Slide as Fed Bond-Purchase Boost Fuels Inflation Bets
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Treasuries fell after the Federal Reserve announced plans to buy $45 billion of U.S. government debt a month and took the unprecedented step of linking stimulus measures to unemployment and inflation.
Thirty-year yields reached a one-month high after the Federal Open Market Committee said interest rates will stay low “at least as long” as the jobless rate stays above 6.5 percent and if inflation “between one and two years ahead” is no more than 2.5 percent. Break-even rates on 30-year inflation-index bonds, a measure of expectations for consumer prices over the life of the securities, climbed to the highest since September.