Fed's Lacker-yield curve reflects brighter outlook

RALEIGH, N.C., June 10 (Reuters) - Federal Reserve Bank of Richmond President Jeffrey Lacker said on Wednesday that U.S. government bond yields may be rising due to optimism on a recovery, and views the Fed will raise interest rates sooner than had been expected.

"Rates have risen of late ... the leading interpretation of that movement is that it reflects greater confidence that economic recovery is coming and coming sooner than ... thought," Lacker told the North Carolina Senate Appropriations Committee in response to a question after he spoke on the economy. (Reporting by Alister Bull; Editing by James Dalgleish)