Treasuries Trade in Tightest Range in 2 Months Amid Taper Talk

Treasuries traded in the narrowest range in two months as Federal Reserve Bank of New York President William C. Dudley said economic growth will probably quicken in 2014, possibly warranting a reduction in the central bank’s bond purchases.

The benchmark 10-year note yield traded near a one-week low after Dudley, in remarks prepared for a speech in Stamford, Connecticut, reiterated that the Fed may prolong bond purchases if the economy turns out weaker than its forecasts. Investors trimmed wagers the prices of Treasuries will drop, according to a survey by JPMorgan Chase & Co. A Labor Department report July 5 is forecast to show the U.S. added 165,000 jobs.