Treasury 10-year notes fell for a second week in the first back-to-back losses this year amid bets the Federal Reserve will push on with bond-buying cuts, viewing the strength of the economy as being masked by harsh weather.
Treasury 10-year notes fell for the first time in three days as Federal Reserve Chairman Janet Yellen said reductions in the central bank’s bond purchases are likely to continue even amid uneven employment growth.
The difference between yields on two- and 10-year Treasuries widened to the most since 2011 as employment gains reinforced expectations the Federal Reserve is close to slowing bond purchases used to stimulate growth.
Treasury yields rose to the highest in almost two years as the U.S. added more jobs than forecast for a third month, boosting bets the Federal Reserve will begin curbing the pace of its bond purchases as soon as September.
The Treasury 10-year note yield fell to the lowest level this year as a government report showing the economy grew at a slower pace than forecast in the first three months boosted demand for the safest assets.