Treasuries Drop for First Time in Four Days Amid Fed Speculation
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Treasuries snapped a three-day advance amid speculation a U.S. budget agreement will support the economy and make it easier for the Federal Reserve to start reducing bond purchases.
The government sold $21 billion of 10-year notes to weaker-than-average demand as the securities headed for the worst annual performance in four years. It will auction $13 billion of 30-year bonds tomorrow. Budget negotiators unveiled an agreement yesterday to ease automatic spending cuts by about $63 billion over two years and cut the deficit by $23 billion, ending a three-year cycle of fiscal standoffs. The Fed meets Dec. 17-18.