Prices for U.S. Treasuries slump after Fed statement
NEW YORK Dec 12 (Reuters) - Prices for U.S. Treasuries dropped sharply after the Federal Reserve said it will buy longer-term Treasury securities after its "Operation Twist" finishes at month-end.
In a surprise move, the Fed also adopted numerical thresholds for policy, a step that had not been expected until early next year.
Despite an initial bounce higher after the statement, prices gave up earlier gains to plunge, with 30-year bonds falling more than a full point.
Prices for 10-year notes fell 09/32 to yield 1.685 percent, with 30-year bonds off 1-05/32 to yield 2.899 percent.