Short-Dated Treasuries Fall as Strong US Data Dents Rate Bets

Short-maturity Treasuries fell slightly after strong US economic growth and employment data made a small dent in the market’s conviction about how deeply the Federal Reserve will cut interest rates in the months ahead.

Yields on two- to five-year notes rose at least two basis points to session highs after the US economy’s second-quarter growth rate was revised to 3.3% from 3%, exceeding economist expectations. At the same time, weekly jobless claims data showed a bigger-than-anticipated decline in new claims, a sign of labor-market strength.