Treasuries Drop, Sending 10-Year Yield to 5%, on Speculation Fed on Hold

(Bloomberg) -- U.S. Treasuries fell, pushing 10-year
yields through 5 percent, on speculation the Federal Reserve will
refrain from cutting interest rates as the global economy
strengthens.

Ten-year yields rose to the highest since August 2006 after
Fed Bank of Richmond President Jeffrey Lacker said growth will
rebound in 2007 because of ``healthy'' consumer spending. Merrill
Lynch & Co. and Goldman Sachs Group Inc. this week scrapped their
forecasts that the Fed would cut interest rates this year.


Read more at Bloomberg Bonds News