Global stocks rebounded from the biggest drop in a month and the ruble rallied as Russia said there was no immediate need to invade eastern Ukraine. Bonds retreated with gold as oil slipped the most in two months.
Treasuries fell amid bets the Federal Reserve will push on with reductions to its bond- purchase program, viewing weak economic data this year as reflecting harsh weather rather than a faltering recovery.
Treasuries declined, with 10-year yields climbing from a two-month low, as the U.S. sold $64 billion of notes, the first time it conducted two fixed-coupon debt auctions in a single day since October 2008.
Treasuries rose as Federal Reserve Chairman Ben S. Bernanke refrained from endorsing the use of additional stimulus measures while a government report showed economic growth slowed more than forecast last quarter.
Treasury 10-year note yields touched the highest in more than three months after initial jobless- benefit claims fell more than forecast as the Federal Reserve prepares to cut back on its monthly bond-buying.
Treasury 10-year notes rose for an eighth day, the longest run of gains since December 2008, as investors sought safety with Spanish debt yields climbing toward levels that prompted other European nations to seek bailouts.
Treasury 10-year note yields fell from almost the highest level in three weeks on speculation the Federal Reserve may keep its target interest rate at almost zero for an extended period when it starts stimulus cuts.
Treasury 10-year note yields reached the highest level in two months as a report showing U.S. jobless claims fell more than forecast last week added to speculation the Federal Reserve is moving closer to reducing bond purchases.