NEW YORK: Longer-dated US Treasury yields fell more than shorter-dated yields on Tuesday after New York Federal Reserve President William Dudley told Fox Business Network that the central bank may increase interest rates as soon as September if the economy improves further.

The yield difference between U.S. 30-year and five-year Treasuries shrank by more than 1 basis point to 113 basis points, according to Tradeweb, as traders bet short-term rates would rise faster than longer-term bond yields.

Copyright Reuters, 2016