Treasuries Fall First Time in Four Weeks on Bets Impasse to End

Treasuries dropped for the first time in four weeks on bets lawmakers will end the partial shutdown of the U.S. government in time to reach an accord on extending the federal debt limit, averting lasting damage to the economy.

Yields on benchmark 10-year notes rose from a seven-week low, while trading in the narrowest range since April. The Treasury Department said on Oct. 3 that breaching the debt limit may have catastrophic results that last decades, such as higher interest rates and slower growth. Investors sold bills due closest to the Oct. 17 deadline, pushing one-month rates to the highest level since 2009. Even if the government remains closed, the U.S. will sell $64 billion of notes and bonds next week.