Treasuries Drop Before $35 Billion 2-Year Note Sale on Fed View
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Treasuries fell, extending their biggest loss in more than two years, before a report forecast to show U.S. consumer confidence jumped in May to a six-month high, fueling bets the Federal Reserve will slow monetary stimulus.
Treasury 10-year yields traded at almost the highest level since March before the U.S. auctions $35 billion of two-year notes in the first of three sales this week totaling $99 billion. Government securities have lost 1.3 percent in May, set for the steepest drop since December 2010, according to Bank of America Merrill Lynch indexes. Fed Chairman Ben S. Bernanke said last week the central bank may cut the pace of asset purchases if officials see indications of sustained economic growth.