NEW YORK -- Treasurys prices dropped on Friday, sending 2-year yields above 1% for the first time this month, after a media report revived concerns about when the Federal Reserve may have to raise interest rates. In what some bond strategists called a re-hash of recent Fed speeches, a Financial Times story released during Asian trading hours intimated that the central bank may have to begin changing its language regarding how long it will keep rates low. The story noted that rising commodity prices and the weakening dollar are a "new wild card" for policy makers, though it's unlikely rates will rise before mid-2009. Two-year note yields , which move inversely to prices, rose 6 basis points to 0.98% in recent trading, after reaching 1.03% earlier. Shorter-term securities are more sensitive to interest-rate expectations.

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