US bond prices fall on Fed's Bullard remarks

NEW YORK: US Treasuries prices fell mid-morning Thursday with the 30-year bond losing more than 1 point after St. Louis Federal Reserve President James Bullard said the U.S. central bank might want to consider maintaining its bond purchase program to help the economy.

"Inflation expectations are dropping in the U.S., and that is something that a central bank cannot abide," the regional Fed chief told Bloomberg television. "We have to make sure that inflation and inflation expectations remain near our target."

Prolonged bond purchase stimulus from the Fed would support domestic economic growth, boosting appetite for stocks and inflation expectations and pushing up bond yields, traders said.

Benchmark 10-year Treasury notes last traded 12/32 lower in price to yield 2.134 percent, up 4 basis points from late on Wednesday.