Bond yields rise ahead of Fed decision

Prices for US Treasury bonds were lower on Monday, sending yields higher as equities rose on Wall Street and corporate bonds seemed to settle down so that investors didn’t feel as much of a need to find safe places for their money.

Analysts and traders warned, however, that what the Federal Reserve has to say on Tuesday after it makes its new interest rates decision could remind investors of the continuing problems around credit markets.

Two year Treasury bonds were yielding 4.52 percent, up from 4.41 percent late Friday, while ten-year issues yielded 4.75 percent and thirty-year paper was at a yield of 4.91 percent.

There are auctions of 10-year and 30-year bonds scheduled for later this week.

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