U.S. Treasuries fell, adding to five weeks of losses, as Federal Reserve Bank of Cleveland President Sandra Pianalto said inflation is ``uncomfortably high.''
The price of the 4 1/2 percent note due May 2017 fell 3/8, or $3.75 per $1,000 face amount, to 94 30/32. Yields move inversely to prices. The two-year note yield gained almost 2 basis points to 5.01 percent.
`Uncomfortably High'
The Fed ``has described our core rate of inflation as being uncomfortably high and has stressed the importance of further moderation in inflation,''
Fed policy makers kept the overnight lending rate between banks at 5.25 percent at their last seven meetings.
Bottom Line: About a 50/50 chance the Fed's benchmark rate will rise to 5.5 percent soon.
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