U.S. budget negotiators plan to work this weekend from a shrinking menu of options to ease automatic spending cuts for as little as one year amid objections from some groups and lawmakers, said people familiar with the talks.
U.S. budget negotiators are near a deal in which Democrats would accept fresh revenue from user fees and Republicans would agree to more federal spending, steps that could avoid another government shutdown next year.
Treasuries fell for the first time in five days as a strengthening economy added to concern the Federal Reserve is closer to reducing bond purchases and held demand at the government’s auction of seven-year notes.
Treasuries headed for the first monthly decline since August as reports of increased economic growth spurred speculation the Federal Reserve may vote to begin to reduce its bond purchases at a December policy meeting.
German government bonds fell with U.S. Treasuries as reports showing America’s economy is improving spurred speculation the Federal Reserve will reduce debt purchases, damping demand for fixed-income assets.