Treasury Yield 4 Basis Points From 2-Week High; Obama to Speak

Treasury yields were within four basis points of a two-week high as President Barack Obama prepared a television address seeking to break the impasse over how to raise the U.S. debt ceiling and avoid a default.

Traders increased bets on inflation, driven by concern the U.S. will have its debt rating cut, weakening the dollar and increasing costs in the economy. The Treasury is scheduled to sell $35 billion of two-year debt today, the first of three note auctions this week totaling $99 billion.