Treasuries Fall as Fed Minutes Show December Liftoff Possibleby
Treasuries fell as minutes from the Federal Reserve’s October meeting showed policy makers wanted to convey that it may be appropriate to raise interest rates in December.
Officials left their target near zero in October and signaled that they’re assessing whether to lift it in December, leading traders to ramp up bets on a boost by year-end.
Yields on two-year notes, the maturity most sensitive to changes in Fed policy, rose three basis points, or 0.03 percentage point, to 0.88 percent as of about 2:10 p.m. in New York, according to Bloomberg Bond Trader data. The price of the 0.75 percent security due in October 2017 was about 99 3/4.