Treasury prices fell further on Monday, pushing yields higher as expectations that the Federal Reserve will soon raise interest rates continued to drive financial markets. The yield on the 10-year U.S. Treasury note rose 1 basis point to 1.688%. The interest rate on the U.S. benchmark note on Friday climbed 5.7 basis points to 1.671%, it's highest level since June 23, the day of the Brexit vote. The rise in yields came after Boston Fed President Eric Rosengren on Friday said a "reasonable case can be made" for raising interest rates, fueling expectations a rate hike could happen as soon as next week. The CME FedWatch Tool is currently indicating a 24% probability of a tightening at the Fed's Sept. 20-21 meeting and an almost 60% chance for an increase in December. The yield on the 2-year Treasury note , which is most sensitive to Fed rate changes, gained 1 basis point to 0.7942% on Monday.
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