(Bloomberg) -- Treasuries advanced after Federal Reserve Vice Chairman Stanley Fischer that while higher interest rates are warranted this year, economic developments will guide the pace and extent of increases.
The 10-year note yield was close to six-week lows as Fischer said interest rates “will sometimes have to be increased, and sometimes decreased” during normalization from the zero level. Investors are questioning the sustainability of U.S. economic strength after the Fed lowered its growth and interest-rate assessments last week.
“His speech makes it clear any thought you may have had of a series of consecutive rate hikes is being proven false,” said Dan Greenhaus, chief global strategist in New York at BTIG LLC. “They may also reduce rates along the way.”
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