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BOND REPORT: Treasurys Fall On Bernanke; 10-year Hits 2%

Treasurys swiftly reacted to comments by Federal Reserve Chairman Ben Bernanke about the time frame for discussing changes to monetary policy, sending yields to their first day above 2% since mid-March.The 10-year note (10_YEAR) yield, which moves inversely to prices, rose to 2.034%, 10 basis points higher on the day.The 30-year bond (30_YEAR) yield rose 8 basis points to 3.217% and the 5-year note (5_YEAR) yield rose 7 basis points to 0.897%.In a prepared statement, Bernanke committed to "increasing or decreasing" asset purchases based on economic conditions, noting that tightening monetary policy would be premature.Tapering of the Fed's bond-purchase program would send bond yields higher, putting the Treasury market on alert for the time frame of such a decision.Yields had fallen, as bonds rallied, after the release of the prepared comments. But they reversed after a question-and-answer session with lawmakers provided a different tone, as Bernanke suggested that tapering purchases co...

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