Treasuries Decline as U.S. Housing Starts Beat Forecasts

Treasuries dropped, pushing 10-year note yields higher for the first time in five days, as better-than-forecast reports on housing starts and jobless claims added to signs the economic recovery is strengthening.

Yields on the benchmark security climbed from the lowest level in two weeks as the number of Americans filing first-time claims for unemployment insurance payments fell more than forecast last week to the lowest level in five years. Treasuries were the most expensive in two weeks yesterday, according to a model created by economists at the Fed.