U.S. Government Bonds Pull Back on Fed's Rate Outlook; Federal Reserve's Latest Monetary-Policy Releases Raise Worries About Higher Interest Rates
Treasury bonds pulled back Wednesday for the first time this week as the Federal Reserve's latest monetary-policy releases renewed worries about higher interest rates.</br></br>The benchmark 10-year Treasury note fell by 4/32 in price, yielding 2.6%. Yields rise as prices fall.</br></br>The yield rose to as high as 2.625%, the highest intraday level since July 7.</br></br>Shorter-dated Treasurys led the selling, as their yields are directly affected by the Fed's interest-rate outlook.</br></br>The two-year note was 1/32 lower, yielding 0.556%, near the highest level since 2011. The five-year note was 5/32 lower, yielding 1.804%.