Bonds
Treasury Auctions Draw Highest Yields Since Before 2008 Crisis
- Reflects impact of selloff on risk of further rate hikes
- Big federal deficits also increasing supply of Treasuries
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The auctions of two- and five-year Treasury notes Monday drew the highest yields since before the 2008 financial crisis, reflecting the US bond-market selloff that deepened last week in anticipation of another Federal Reserve rate increase.
The $45 billion two-year auction at 11:30 a.m. New York time was awarded at 5.024%, eclipsing last month’s result to become the highest since 2006. It will pay interest at a rate of 5%, also the most since that year.