(Bloomberg) -- Treasury 30-year yields were close to the lowest level in 11 months after Federal Reserve Chair Janet Yellen told U.S. lawmakers yesterday inflation and employment were short of the central bank’s goals.
Ten-year notes were little changed as Yellen prepared for a second day of testimony to Congress and Philadelphia Fed Bank President Charles Plosser urged the central bank to clarify the likely path of interest rates. The Treasury will sell $16 billion of 30-year bonds today. The outlook for slow inflation combined with safety demand amid unrest in Ukraine drove returns for long bonds to 12 percent this year through yesterday, Bank of America Merrill Lynch indexes show. The Standard & Poor’s 500 Index earned 2.3 percent including reinvested dividends.
Yellen in her testimony to lawmakers yesterday highlighted weaknesses in the labor market, such as the number of long-term unemployed, even as the economic outlook improves.
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