Treasuries Show Traders Over Yellen’s 6-Month Rate-Boost Comment

Treasury traders have gotten over the jolt from Federal Reserve Chair Janet Yellen’s suggestion in March that the central bank may raise U.S. interest rates as soon as the middle of next year.

Two-year note yields are below where they were on March 19, when Yellen spoke. While the comment sent short-term rates up that month, they moved back down in May as Yellen emphasized the economy isn’t meeting the Fed’s goals. Ten-year note yields rose before the Fed releases minutes of its April meeting that may help investors gauge the factors policy makers will use in deciding when to raise the benchmark federal funds rate.