U.S. Notes Headed for Quarterly Loss as Bets on Fed Rate Cut Are Reduced

(Bloomberg) -- U.S. Treasuries headed for their
biggest quarterly loss since the three months ending March 2006
as traders pared bets the Federal Reserve will lower interest
rates this year.

Government debt fell yesterday after Fed policy makers
reiterated quickening inflation remained their ``predominant''
concern and kept the benchmark rate at 5.25 percent. Bonds were
little changed before a report that's forecast to show U.S.
inflation held near the top of the Fed's preferred range.


Read more at Bloomberg Bonds News