Treasury Yields Surge to Sixteen-Month High on Economic Data
- Fed minutes show officials see case for rate hike in near term
- European Central Bank said to consider lending more bonds
U.S. Durable Goods Demand Surges 4.8% in October
Treasuries fell along with European government bonds as a gauge of U.S. manufacturing demand surged, while the European Central Bank was said to be considering lending more bonds to prevent a freeze in the repo market.
Demand for durable goods -- items meant to last at least three years -- jumped 4.8 percent on a surge in orders for commercial aircraft, compared to forecasts for a 1.7 percent advance, Commerce Department data showed Wednesday. Treasuries pared losses after a $28 billion auction of seven-year notes drew higher-than-average demand, and remained steady after minutes from the Federal Reserve’s November meeting showed officials saw a strengthening case to raise interest rates in the near term, in line with market expectations.