Treasuries Post Worst Slump Since 1984 on Fed Rate Concern

Bloomberg reports:

Treasuries posted their worst slump in more than two decades as traders pushed yields to where they expect the Federal Reserve to lift its benchmark lending rate at policy meetings next week and in August.

Yields on benchmark 10-year notes rose for an eighth consecutive day, the longest losing stretch since May 1984. They've climbed 26 basis points to 5.22 percent, the highest in four years, as speculation increases that the Fed may increase rates by as much as 50 basis points on June 28 and 29.

Trading ``definitely has the feel of repricing the market to fit better with expectations about the Fed,'' said Ian Lyngen, an interest-rate strategist in Greenwich, Connecticut at RBS Greenwich Capital.

Is the Fed going to raise the Fed Funds target rate 50 basis points? Anyway,mortgage rates should go even higher.So if you are speculating on real estate good luck to you.