Economist forecasts for Treasury yields at the end of 2014 are the highest since Bloomberg began surveying for the figure in July amid speculation the Federal Reserve will start cutting bond purchases as soon as next week.
Federal Reserve Bank of St. Louis President James Bullard, a voter on policy this year, said an improving job market has increased the chances of a reduction in the Fed’s bond purchases, and any cut should be modest because of too-low inflation.
The gap between yields on 10- and 30- year Treasuries reached the narrowest level in more than 10 weeks on speculation inflation will remain in check as the Federal Reserve begins to slow bond purchases.
Federal Reserve Bank of Dallas President Richard Fisher said the U.S. central bank should begin dialing back its asset purchases as soon as possible in an economy that doesn’t need any more monetary stimulus.
Emerging-market stocks led global equities higher as faster-than-estimated Chinese export growth bolstered optimism in the global economy. The Standard & Poor’s 500 Index and India’s benchmark gauge rose to close at record highs, while natural gas jumped on colder U.S. weather.