Treasuries Drop Ends Seven-Day Gain Before Fed Minutes
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Treasuries fell, snapping a seven-day rally that carried yields to almost record lows, on speculation minutes of the Federal Reserve’s December meeting will show a central bank intent on raising interest rates this year even as inflation slows.
Futures traders are pricing in a 59 percent chance of the Fed raising rates from near zero by September. Bonds had soared since the Fed’s last meeting on Dec. 17 as a tumble in oil prices damped the outlook for inflation and as investors sought longer-maturity Treasuries offering yields that are still about the highest in eight years relative to their Group-of-Seven peers.