Demand surged to the highest level since March 2013 for the $62 billion in Treasury notes and bonds sold this week as the U.S. economy showed signs of slowing and investors sought refuge from turmoil in Iraq.
Treasury bonds fell for the first time in four days as traders speculate that the rally that pushed 30-year bonds to the best start of a year in almost two decades went too far too fast with the economy strengthening.
Treasury 30-year bonds fell, widening the gap between yields on the securities and five-year notes from the least since 2009, as investors embraced a strengthening economy amid Federal Reserve stimulus withdrawal.
Federal Reserve officials agree that they must retool their guidance on when to consider raising interest rates. Chair Janet Yellen’s task is to forge a consensus on the new message from their disparate views.
U.S. stocks fell, after the Standard & Poor’s 500 Index reached a record, as investors weighed federal budget negotiations and better-than-estimated economic data to gauge the timing of any Federal Reserve stimulus cuts.