Treasury Yields Hit 5-Year High

The dollar gained against the euro and the yen, reported the news agency.

According to CNN, the 10-year benchmark extended losses to climb 5.32 percent, falling 6/32, or $1.87 on a $1,000 note, up sharply from 5.29 percent Tuesday.

The 30-year lost 15/32, or $4.68 on a $1,000 note, to yield 5.43 percent, up from 5.39 percent the previous session. Bond prices and yields move in opposite directions, reported CNN.

The 5-year fell 3/32 to yield 5.23 percent, while the 2-year lost one tick, yielding 5.12 percent, reported CNN.

According to CNN, investors have been watching the bond market closely amid renewed fears of inflation, prompting some to speculate that the Fed will not cut interest rates in 2007.

That fear sent bond prices tumbling last Thursday, pushing the benchmark 10-year yield above 5 percent for the first time in 11 months, as traders expected higher rates to hit consumer and corporate spending, reported CNN.-New York State Society of Certified Public Accountants