U.S. Treasury yields rose after President Donald Trump said the United States did not need a deal with Iran, while traders weighed the possibility of a larger-than-usual Federal Reserve rate hike in December. The 10-year yield rose 6.53 basis points to 5.054%, and the 2-year yield gained 10.79 basis points to 4.835%.
Treasury yields rose on Thursday after Trump said the United States did not need a deal with Iran. An analyst said portfolio managers were considering the possibility of further attacks over the weekend. The 2-year yield rose 10.79 basis points to 4.835%, its highest since October 14, while the 10-year yield gained 6.53 basis points to 5.054%, its highest since October 22.
Traders are assessing the likelihood of a 50-basis-point Federal Reserve rate increase in December, larger than the usual 25-basis-point move. Fed Governor Christopher Waller said the central bank should raise rates in December and consider a half-point increase if inflation worsens. Cleveland Fed President Beth Hammack said she prefers gradual increases in smaller increments. Futures traders were pricing in 27 basis points of December hikes.
The Treasury planned to sell $25 billion in 30-year bonds on Thursday, the final sale in a week of $125 billion in coupon-bearing debt. Demand was mixed at Monday's $58 billion three-year note sale and average at Tuesday's $42 billion 10-year note auction.
