Bonds

Treasuries Fall as Traders Weigh Fed ‘Tug of War’ on Rate Views

Jerome Powell departs after speaking during a Greater Providence Chamber of Commerce 2025 Economic Outlook luncheon in Warwick, Rhode Island, on Sept. 23.

Photographer: Sophie Park/Bloomberg

Treasuries fell as traders weighed divergent views by Federal Reserve officials this week that clouded the path on interest-rate cuts.

Yields rose about four basis points across tenors, with the rate on two-year notes — which closely track expectations for Fed policy — rising to 3.60% Wednesday in New York. It was an extension of a move that began last week after policymakers cut rates for the first time this year, but signaled they would take a cautious approach to further reductions.