Treasuries dropped, pushing 10-year note yields up for the third week this month, on speculation minutes of the Federal Reserve’s policy meeting indicated the bank may trim debt purchases by the end of the year.
Rates on Treasury bills maturing in November and December jumped for a second day as officials in Washington worked on a short-term budget agreement that may push the possibility of a default back six weeks.
Treasuries rose, pushing yields down from two-year highs, after a report showed purchases of new U.S. homes plunged in July, tempering speculation the Federal Reserve will slow its bond-buying program as soon as next month.
Treasuries slid, sending 30-year yields to the highest level since May, amid increased criticism of the Federal Reserve’s plan to stimulate growth and concern that a swelling U.S. deficit will lead to higher borrowing costs. U.S. stocks erased gains and the dollar rallied.