Treasury Yields Rise Most Since March on Budget Deal, Fed Views

Treasury 10-year yields soared the most since March in the first week of the year after the U.S. avoided the so-called fiscal cliff and Federal Reserve minutes showed policy makers differ over the scope of asset purchases.

The 10-year yield reached 1.97 percent yesterday, its highest level since April 26, before dropping after the Labor Department released a report showing the U.S. unemployment rate was unchanged at 7.8 percent in December. Several policy makers thought the Fed should curb its asset purchases, a policy known as quantitative easing, “well before the end of 2013,” according to a record of the central bank’s Dec. 11-12 meeting. The U.S. will sell $66 billion of notes and bonds next week.