Treasuries slid, pushing 10-year yields to the highest level since September, as industry data showed job growth accelerated more than forecast, adding to bets the Federal Reserve may reduce bond purchases this month.
Treasuries fell, pushing the yield on the benchmark 10-year note up from a one-week low, before a speech by Federal Reserve Chairman Ben S. Bernanke that may help gauge the outlook for monetary stimulus.
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.
Treasuries lost the most in four months after a report showed the economy added more jobs last month than forecast, boosting speculation the Federal Reserve may slow bond purchases as soon as its Dec. 17-18 meeting.
Treasury 10-year notes fell the most in two months this week as two gauges of U.S. economic activity expanded at faster-than-forecast paces, weakening the case for the Federal Reserve to maintain stimulus.
Investors bought the biggest share in a year of an auction of Treasury two-year notes as demand for the securities climbed less than two weeks after a partial government shutdown raised concern of a potential U.S. default.
The U.S. Treasury’s sale of $65 billion of notes and bonds this week drew above-average demand from investors who aren’t primary dealers, even as Verizon Communications Inc. sold a record $49 billion in bonds.