NEW YORK, May 21 (Reuters) - Prices on U.S. 30-year Treasury bonds turned higher on Tuesday after comments from St. Louis Federal Reserve President James Bullard reduced worries about the U.S. central bank tapering its bond purchases later this year.
Bullard, at an event in Frankfurt, said the Fed should continue quantitative easing, adjusting the pace of bond buying according to incoming data.
Speculation the Fed might curb, even stop its $85 billion a month purchases of Treasuries and mortgage-backed securities to hold mortgage rates and other long-term borrowing costs in an effort to support the economic recovery has fed the rise in long-dated yields since the start of May.
The 30-year bond last traded 16/32 higher in price at 94-23/32 with a yield of 3.148 percent, down 2.8 basis points from late on Monday.
