Treasuries fell, with benchmark 10- year yields rising for the first time in four weeks, as an accord aimed at ending the crisis in Ukraine and signs of a strengthening U.S. economy crimped refuge demand.
The U.S. Treasury’s $21 billion 10- year note auction attracted the least demand from investors who place bids directly since January with the Federal Reserve preparing to raise borrowing costs next year.
Treasuries declined for the first time in five days before the minutes of the Federal Reserve’s last policy meeting are released as a $21 billion sale of 10- year notes produced an above-forecast yield.
Treasury two-year notes rallied after meeting minutes showed Federal Reserve policy makers said a rise in their median projection for the main interest rate exaggerated the likely speed of policy tightening.
Treasuries rose for a third day as DoubleLine Capital LP’s Jeffrey Gundlach said yields are poised to fall further and Pacific Investment Management Co.’s Bill Gross cut his holdings of U.S. government-related debt.
Fidelity Investments, the second- biggest U.S. mutual-fund company, appointed Robert P. Brown president of its bond unit to replace Christopher Sullivan, who was named head of institutional fixed-income.