Bloomberg: Treasury Yield Highest in 3 Years on Fed Outlook
Bloomberg reported the Treasury sold $30 billion of two-year notes at the highest yield in more than three years as investors bet the economy will be strong enough for the Federal Reserve to remain on pace to raise interest rates next year.
Bloomberg notes the securities were sold at a yield of 0.511%, the most since the May 2011 monthly auction drew 0.56%.
Bloomberg notes there is a 60% probability the Fed will raise rates to at least 0.5% by July of next year, based on fed funds futures, versus a 43% chance at the end of May.
To read the entire Bloomberg article, click here.