Two-year US Treasury bonds yield 5 percent

US Treasury bonds saw prices fall and yields rise on Tuesday after the Institute for Supply Management reported that its services index was at 59.7 in May. Most analysts had predicted that it would decline to 55.3 during the month.

Two-year Treasury bonds yielded 5 percent as prices dropped by 63 cents on a $1,000 note. It was the first time since January that two-year notes have reached such a high yield. Five-year paper was yielding 4.96 percent, while ten-year notes were at a yield of 4.98 percent, higher from Monday’s late quote of 4.93 percent. The thirty-year bond dropped $6.56 on a $1,000 note to yield 5.06 percent.

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