Treasuries fell for the first time in five days as a strengthening economy added to concern the Federal Reserve is closer to reducing bond purchases and held demand at the government’s auction of seven-year notes.
Treasuries headed for the first monthly decline since August as reports of increased economic growth spurred speculation the Federal Reserve may vote to begin to reduce its bond purchases at a December policy meeting.
Italy’s government bonds rose, with two-year yields dropping the most in almost three weeks, as the nation’s borrowing costs fell at an auction before lawmakers vote on the future of former Premier Silvio Berlusconi tomorrow.
Italy’s 10-year yield approached a five-month low as Prime Minister Enrico Letta said turmoil in former Premier Silvio Berlusconi’s PDL party will boost government stability and the nation sold five-year notes in an exchange auction.
Adidas AG, the world’s second-biggest sporting-goods maker, said the build-up to next year’s soccer World Cup in Brazil will boost revenue from the current quarter as it starts selling team jerseys and the official match ball.