US bond yields up on interest rate fears
May 30, 2006
In the US on Tuesday, concerns about future rises in the interest rate caused Treasury bond yields to rise. The new concern was spurred by comments by the president of the Chicago Federal Reserve that inflation is now at the upper end of the range at which the economy remains stable. However, bond yields did not rise as much as they could have as the equities markets saw significant declines, which tends to send investor money into bonds. Yields on two-year Treasury bonds were 2.1 basis points higher to 4.975 percent, while ten-year issues had added 3.4 basis points to a yield of 5.086 percent.
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