Consumer spending in the U.S. unexpectedly dropped in September as incomes rose at the slowest pace of the year, indicating the economy will have difficulty sustaining a pickup in growth into the end of the year.
Jobless claims climbed by 21,000 to 311,000 in the period ended Aug. 9, the highest in six weeks, a Labor Department report showed today in Washington. The median forecast of 48 economists surveyed by Bloomberg called for 295,000.
Treasuries fell, pushing 10-year yields toward the highest since 2011, as data showing gains in U.S. durable-goods orders, home prices and consumer confidence boosted the case for the Federal Reserve to slow bond purchases.
Treasuries fluctuated as reports showing weekly claims for U.S. jobless benefits unexpectedly rose and inflation remained subdued added to speculation the Federal Reserve will seek to provide more monetary stimulus.