Treasuries traded in the tightest range in almost a month after reports showed U.S. companies expanded hiring at a slower-than-forecast pace and a services- industry index declined more than projected, adding to speculation that economic growth is stalling.
Treasuries rose for the first time in three days as U.S. retail sales unexpectedly fell in January by the most since June 2012 and initial claims for jobless benefits rose more than forecast last week.
Treasury 10-year note yields traded in the narrowest range in a month amid speculation whether Federal Reserve Chairman Janet Yellen will acknowledge that the recovery in the U.S. labor market is slowing.
Treasury five-year note yields fell to almost the lowest level since June amid speculation demand at a $35 billion sale of the securities will be boosted on bets the Federal Reserve will maintain stimulus.
The difference between yields on 10- and 30-year Treasuries was almost the least in three years on speculation subdued inflation will boost demand at the government’s auction of $13 billion in long bonds.
Treasuries fell, pushing 10-year note yields to the highest level in more than two years, as gains in U.S. consumer confidence and home sales bolstered bets the Federal Reserve will end bond purchases next year.
Treasury notes slid for a second day, pushing 10-year yields to a three-month high, on bets the Fed will conclude its bond-buying program by the end of next year as it steadily reduces purchases amid economic improvement.