Treasury Yields Rise to Highest Since 2011 on Fed Policy Outlook

Treasuries fell, pushing yields on 10- and 30-year securities to the highest since August 2011, on speculation stronger U.S. growth will prompt the Federal Reserve to reduce its bond buying program as soon as next month.

Yields on 10-year notes, a benchmark for corporate and consumer borrowing rates, climbed above 2.8 percent for the first time in two years as reports showed U.S. initial jobless claims declined last week to the lowest level in almost six years and confidence among U.S. homebuilders rose in August to the highest level since 2005. Treasury data showed private investors abroad sold a record amount of notes and bonds in June, when Fed policy makers indicated they are considering a slowing of their quantitative-easing policy.