Treasuries Fall as Yellen Backs Stimulus, Sees Employment Gains

Treasury notes fell as Federal Reserve Chair Janet Yellen said the central bank has a “continuing commitment” to support the recovery even as policy makers see full employment by late 2016.

The difference between yields on five-year notes and 30-year bonds narrowed to the least this month as Yellen said investors should pay attention to any shortfall in inflation and the jobless rate for signals on the Fed’s decision on its policy rate. Treasuries fell earlier as a report showed industrial production increased last month more than forecast, adding to evidence the economy is strengthening.