Treasuries fell while the dollar gained as the Federal Reserve raised estimates for interest rates at the end of next year even as it pledged to keep rates low for a “considerable time.” U.S. stocks pared earlier gains.
The rate on 10-year Treasury notes rose three basis points to 2.62 percent, a two-month high. Five-year yields rose to a one-year high. The Bloomberg Dollar Spot Index climbed 0.7 percent to the highest in 14 months. Oil declined with gold.
The Fed tapered monthly bond buying by $10 billion for a seventh time, staying on course to end the program in October. Policy makers said the economy is expanding at a moderate pace and inflation is below its goal, while maintaining a commitment to keep interest rates near zero. Officials raised their median estimate for the federal funds rate at the end of 2015 by 25 basis points. The rate will be at 3.75 percent at the end of 2017, the Fed said today for the first time
