Treasuries were set for the steepest weekly decline this year amid speculation a U.S. jobs report today will strengthen the case for the Federal Reserve to push ahead with tapering its monetary stimulus program.
Former U.S. Treasury Secretary Timothy Geithner asked a judge to block a demand by McGraw Hill Financial Inc. and its Standard & Poor’s unit for information tied to their claim that the U.S. sued the companies in retaliation for a downgrade of government debt.
Treasuries climbed for a second day as the U.S. auctioned $35 billion in five-year notes to stronger-than average demand amid concern harsh weather may be masking a fundamental slowdown in the economy.
Standard & Poor’s said President Barack Obama met with Treasury Secretary Timothy Geithner just before Geithner warned the company to expect a response to its downgrade of U.S. debt, an event that justifies its request to see White House communications to help defend fraud claims.
The U.S. sale of $32 billion of two- year notes drew the strongest demand in eight months from a class of investors that includes foreign central banks on bets the Federal Reserve will maintain record low interest rates.