Treasuries Fall for Second Week as Economic Gains Fuel Fed View

Treasuries fell for a second week as traders bet economic growth is on a sustainable-enough pace to allow the Federal Reserve to reduce bond-buying later this year even after the U.S. added fewer jobs than forecast last month.

U.S. 30-year bond yields reached the highest level in two years as second quarter economic growth exceeded forecasts and a manufacturing index expanded the fastest in two years. Treasuries trimmed the five-day loss yesterday after the jobs report and rallied July 31 when the Fed said growth has been modest and pledged to keep buying $85 billion of bonds a month. Treasury will sell $72 billion of notes and bonds next week.