Treasuries Yields Rise as Lawmakers Wrangle in Budget Showdown
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Treasury 10-year note yields increased for a third consecutive week as lawmakers in Washington worked to resolve a stalemate over the budget deficit, damping demand for U.S. government debt.
The benchmark yields fell yesterday, paring the increase, after House Speaker John Boehner scrapped a plan to allow higher tax rates on income above $1 million. Without an agreement by year-end, $600 billion of tax boosts and spending cuts will start taking effect and may send the U.S. into recession, even as reports have signaled the economy is improving. The U.S. gained 140,000 jobs in December, a report Jan. 4 may show.