Treasuries Decline as U.S. Data Support Case for Fed Tapering

Treasuries fell, pushing 10-year yields toward the highest since 2011, as data showing gains in U.S. durable-goods orders, home prices and consumer confidence boosted the case for the Federal Reserve to slow bond purchases.

Government securities stayed lower after the U.S. sold $35 billion of two-year debt to below-average demand. Ten-year yields rose for a seventh day, the longest since March 2012. Fed Chairman Ben S. Bernanke said last week policy makers may reduce bond buying under their quantitative-easing stimulus strategy this year and end it in mid-2014 if economic growth is in line with their projections.