Treasuries Head for Monthly Loss as Yellen Readies Rate Increase

Much of the selloff in Treasuries this month was linked with a bond rout in Europe. Federal Reserve Chair Janet Yellen reminded investors that further bond losses may ensue from a stronger U.S. economy and central-bank credit tightening.

Ten-year yields rose for the fourth time in the past five weeks as Yellen said in a speech Friday that a federal-funds rate increase will be appropriate this year “if the economy continues to improve.” Government reports this week showed housings starts last month reached a seven-year high and core inflation exceeded forecasts.