Treasuries Fall for Second Day Before Fed Amid Inflation Gains
- Futures show 76% probability of Fed rate increase this week
- Yields rise as core U.S. inflation advances in November
All Eyes on Yellen as Markets Await Rate Decision
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Treasuries fell, pushing 10-year yields to the highest in more than a week, after a report showing higher core inflation bolstered the view the Federal Reserve will raise interest rates Wednesday.
Yields rose as stocks and oil prices rebounded and after German bunds declined for a second day. A report showed core consumer prices rose 0.2 percent for a third straight month in November. Fed policy makers will finish a two-day meeting Wednesday, and futures contracts show traders expect them to raise interest rates for the first time in almost a decade.