Treasuries Decline on Bets Easing Will Stoke Inflation

Treasury 10-year notes fell, snapping four days of gains, before the Federal Reserve releases minutes of its Sept. 12-13 meeting amid speculation monetary easing will bolster the U.S. economy and stoke inflation.

Thirty-year bonds dropped for a second day. The yield spread between 10-year notes and similar-maturity inflation-linked bonds, a gauge of expectations for consumer prices, was 2.48 percent today, up from 1.95 percent at the end of last year. The decline in Treasury prices was limited before a report today that economists predict will show orders placed with U.S. factories dropped in August.