Bonds Fall With Stocks as Yellen Outlines Stimulus Exit
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Yields on two-year Treasury notes jumped the most since 2011 while stocks slid and the dollar climbed as Federal Reserve Chair Janet Yellen said the central bank’s stimulus program could end this fall and benchmark interest rates could rise six months later.
Two-year yields advanced seven basis points to 0.42 percent at 4:15 p.m. in New York. The rate earlier climbed nine points, the most since June 2011. The Standard & Poor’s 500 Index fell 0.6 percent, after the gauge closed within six points of a record yesterday. The dollar strengthened against all of its 16 major peers, rising 0.9 percent against the yen. Gold dropped the most in three months.