Treasury yields rose to the highest levels since 2011 as the Federal Reserve prepared to start cutting bond purchases amid data that signaled the recovery of the world’s biggest economy is picking up speed.
Treasury two- and five-year note yields slid to record lows as data showing U.S. employers cut more jobs than forecast last month spurred speculation the Federal Reserve will buy more bonds to stimulate the economy.
Treasuries fell, pushing up two-year yields from a record low, as stocks rose after Genzyme Corp. received a takeover approach and the euro gained after 84 of 91 European banks passed stress tests, fueling risk appetite.
Treasury 30-year bond yields rose the most in a week as Federal Reserve Chairman Ben S. Bernanke said continued accommodative policy will be needed to reduce unemployment further, boosting bets inflation will accelerate.
Treasuries dropped, pushing 30-year bond yields to an eight-month high, as initial jobless claims fell and existing-home sales rose more than forecast, bolstering speculation the economic recovery is building steam.
Treasuries rallied, pushing yields on 30-year bonds down the most this year, as a jump in weekly unemployment claims spurred concern the recovery is faltering and bolstered demand to the highest level since 2000 at the $13 billion auction of the securities.