Treasuries Stumble as Fed Rate Increase Odds Above 50%
- New York Fed’s Dudley says September rate increase possible
- Bonds have been on best run since 2011 as Fed seen on hold
The Factors Adding Selling Pressure on the Dollar
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William Dudley is giving Treasuries investors pause after the best run of any year since 2011.
U.S. sovereign debt held a two-day decline Wednesday, a day after the Federal Reserve Bank of New York president said the bond market looked “a little bit stretched,” and an interest-rate increase could come as soon as next month. Futures traders raised bets for tighter policy in 2016 above 50 percent for the first time since just before the U.K. voted to leave the European Union.