Economics
Treasuries Fall as Manufacturing Growth Fuels Wagers on Fed Hike
- Two-year notes lead declines as ISM index rises in September
- Gauge of yield curve flattens for first time in four days
Morning Meeting: Jump in Negative-Yielding Debt
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Treasuries fell, with two-year note yields rising to the highest in almost three weeks, as data showing expansion in the U.S. manufacturing sector fueled wagers that the Federal Reserve will raise interest rates before year-end.
A gauge of the yield curve flattened for the first time in four days as short-dated notes led losses after the Institute for Supply Management’s manufacturing index increased to 51.5 in September following an unexpected contraction in August. The probability of a rate hike by December climbed to 60 percent, according to futures data compiled by Bloomberg, the highest since Sept. 21.