Treasuries Fall on Better-than-Expected Company Profits, Supply

Treasury 10-year notes fell, pushing yields to a one-week high, as greater-than-forecast corporate profits eased concern economic growth is slowing and the U.S. prepared to sell $104 billion in notes.

Treasury two-year note yields lingered at record lows after Federal Reserve Chairman Ben S. Bernanke said July 21 the economic outlook is “unusually uncertain” and policy makers are prepared to take further policy actions as needed. The Committee of European Banking Supervisors said seven of the region’s 91 banks failed stress tests, with a combined capital shortfall of 3.5 billion euros ($4.5 billion).