Pursuits

Treasuries Fall as Week's Sales to Tally More Than $100 Billion

  • Futures signal 72% chance of Fed liftoff in December
  • U.S. to issue more than $100 billion of notes this week
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Two-year Treasury yields held close to a five-year high as the U.S. government sold $26 billion of the maturity while speculation mounts that the Federal Reserve is poised to raise interest rates within weeks.

Monday’s two-year auction drew a yield of 0.948 percent, the highest since April 2010, and a gauge of demand for the sale was the strongestBloomberg Terminal since September. Yet the buying wasn’t enough to push down two-year yields with the Fed’s Dec. 16 decision looming. San Francisco Fed President John Williams said Nov. 21 there’s a “strong case” for an increase in December.