Treasuries fell as the U.S. prepared to sell $27 billion of two-year notes at the highest auction yield since 2011 with investors demanding a bigger premium with the Federal Reserve forecast to raise rates next year.
Treasuries rose for a fourth week, with 10-year yields dropping the most in three months, as investors awaited signals on the probable timing of Federal Reserve interest-rate increases in policy-maker speeches today.
Treasuries rose with the yield on 10-year notes dropping to the lowest level in almost a week as traders bet the declines after a stronger-than-forecast employment report were overdone as the pace of the recovery remains uneven.
U.S. stocks fell, with the Standard & Poor’s 500 Index headed for a one-month low, while Treasuries and the yen gained as the Federal Reserve said it would make further reductions in economic stimulus and as emerging-market currencies weakened. Gold and natural gas climbed.