(Bloomberg) -- Treasuries advanced after Federal Reserve ViceChairman Stanley Fischer that while higher interest rates arewarranted this year, economic developments will guide the pace andextent of increases.

The 10-year note yield was close to six-week lows as Fischersaid interest rates “will sometimes have tobe increased, and sometimes decreased” during normalization fromthe zero level. Investors are questioning the sustainability ofU.S. economic strength after the Fed lowered its growth andinterest-rate assessments last week.

“His speech makes it clear any thought you may have had of aseries of consecutive rate hikes is being proven false,” said DanGreenhaus, chief global strategist in New York at BTIG LLC. “Theymay also reduce rates along the way.”

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