Interest rates in the United States are increasing in the bond market, as Ben Bernanke, chairman of the Federal Reserve, said he does not expect the US economy to fall back into another recession.
Mr. Bernanke’s statement had helped boost stocks, ending a two-day crash. The rebound of the stock market is reducing demand for safer investment such as Treasurys, driving interest rates higher.
The yield on the 10-year note, which is tied to mortgage rates as well as to other consumer loans, rose to 3.19 percent from Monday’s 3.15 percent. The average price of the note maturing in May 2020 dropped 34.375 cents to $102.625.
Mr. Bernanke’s comments also helped calm investor’s fears that the euro zone debt crisis could spread across the Atlantic and spoil the recovery of the US economy.