(Recasts with Yellen testimony)
* Yellen gives hawkish testimony before Senate
* 10-year yields highest in more than a week
By Karen Brettell
NEW YORK, Feb 14 U.S. Treasury yields jumped on
Tuesday after Federal Reserve Chair Janet Yellen said it would
be unwise to wait too long to raise interest rates, striking a
more hawkish tone than investors expected.
The U.S. central bank will likely need to raise rates at an
upcoming meeting, Fed Chair Janet Yellen said, although she
flagged considerable uncertainty over economic policy under the
Yellen said delaying rate increases could leave the Fed's
policymaking committee behind the curve and eventually lead it
to hike rates quickly, which she said could cause a recession.
"It was hawkish, but the market was expecting it to be
hawkish," said Ian Lyngen, head of U.S. rates strategy at BMO
Capital Markets in New York.
"What we are seeing is a down trade on the headline that
waiting too long to tighten monetary policy would be unwise. I
think that's the biggest headline that everyone reacted to."
Benchmark 10-year notes dropped 15/32 in price
to yield 2.49 percent, the highest since Feb. 3, up from 2.44
percent before the testimony.
(Editing by Meredith Mazzilli)