Treasury Yields Trade Near a Four-Week High on Outlook for Interest Rates

(Bloomberg) -- Treasuries were little changed, with yields of 10-year and two-year notes trading near four-week highs, on signs of strength in the world's largest economy.

Futures traders reduced bets on a cut in borrowing costs by the Federal Reserve as a government report suggested the housing slump may be moderating and Fed data showed industrial output increased more than economists forecast. The central bank held its benchmark rate steady at its policy meeting last week, saying inflation remains the ``predominant'' economic risk.


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