Treasuries fell, pushing 10-year yields to the highest in more than two months, as an industry report showed job growth quickened more than forecast, adding to bets the Federal Reserve may advocate slowing bond purchases at this month’s policy meeting.
Treasuries had their first monthly loss since August on speculation that November jobs gains may signal faster economic growth and convince the Federal Reserve to vote next month to scale back bond-buying.
Treasury 10-year note yields traded at almost a two-month high on speculation a U.S. jobs report next week will be strong enough to lead the Federal Reserve to vote to trim bond purchases as soon as December.
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.
Treasury 10-year notes fell for the fourth time in five days as the U.S. services sector grew faster than forecast last month, underpinning speculation the Federal Reserve may move up the timing of asset-purchase cuts.
Treasury 30-year bond yields climbed from the lowest level in more than a week as the U.S. auctioned $13 billion of the securities before the Federal Reserve discusses its debt purchases at a meeting next week.
Rates on Treasury bills maturing in November and December jumped for a second day as officials in Washington worked on a short-term budget agreement that may push the possibility of a default back six weeks.