Treasury Yields Climb to Highest Since 2011 as Tapering to Begin

Treasury yields rose to the highest levels since 2011 as the Federal Reserve prepared to start cutting bond purchases amid data that signaled the recovery of the world’s biggest economy is picking up speed.

Ten-year note yields exceeded 3 percent and 30-year yields approached 4 percent before a report forecast to show the unemployment rate held at a five-year low. Fed Chairman Ben S. Bernanke said yesterday the headwinds that have held back the U.S. economy may be abating. A gauge of traders’ outlook for inflation rose to a three-month high. The Treasury is scheduled to sell $64 billion of notes and bonds next week.