By Susanne Walker Barton | Bloomberg Business
Treasuries declined, led by the longest maturities, after a report showed U.S. new-home construction climbed last month to the highest in almost eight years.
Yields rose as signs of economic strength may bolster the Federal Reserve’s case for increasing interest rates this year. Futures show less than a 50 percent probability the central bank will raise its benchmark overnight rate at next month’s policy meeting.
“It’s certainly a factor for the Fed,” said Jim Vogel, an interest-rate strategist with FTN Financial in Memphis, Tennessee. “It’s important for the Fed because it shows a certain breadth of household confidence.”
