Treasuries Drop as Polls Show Presidential Race Narrowing

Treasuries fell, extending last week’s decline, with investors reluctant to speculate on the prospects of the U.S. economy as the presidential race heads into its final two weeks with polls showing a dead heat.

Benchmark 10-year note yields traded up from their 200-day moving average before data this week forecast to show durable-goods orders rose in September and growth accelerated in the third quarter. President Barack Obama and Republican challenger Mitt Romney are tied at 47 percent in a national poll of likely voters before a televised debate tonight. The Treasury is scheduled to sell $99 billion of two-, five- and seven-year notes starting tomorrow.