Treasuries fell from the highest levels since early June after Federal Reserve Bank of Atlanta President Dennis Lockhart said the central bank is almost ready to raise interest rates.
U.S. 10-year yields rose after earlier touching their 200-day moving average, a level some traders use to assess whether valuations are stretched. On Monday, a collapse in crude prices and weaker-than-forecast manufacturing data fueled speculation the Fed would hold off on raising interest rates as soon as its next meeting, in September.
Lockhart, a voting member of the Federal Open Market Committee, told the Wall Street Journal in an interview published Tuesday that it would take significant deterioration in economic data to convince him to put off increasing borrowing costs next month.
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