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.
Treasuries fell as reports showed initial jobless claims were lower than forecast last week and a manufacturing index expanded, adding to speculation the Federal Reserve will raise interest rates at some point next year.
Treasuries rose, pushing 30-year bond yields to the lowest since July, on speculation the Federal Reserve isn’t preparing to accelerate interest-rate increases and as a report showed inflation remains subdued.
The difference between yields on 10- and 30-year U.S. Treasuries narrowed to the least since 2010 after the Federal Reserve indicated interest rates may rise faster than anticipated while the pace of growth is moderate.
The difference between yields on two- and 10-year Treasuries narrowed for the first time in three weeks as investors questioned the pace of the economic expansion after reports showed harsh weather weighed on U.S. growth.
A decline in the amount of Treasuries offered for sale to the Federal Reserve compared with the amount bought by the central bank should help support prices for U.S. government debt, according to FTN Financial.