Treasuries Fall Second Day Before Data Forecast to Show Job Gain

Treasuries dropped for a second day before a government report on Feb. 7 that’s forecast to show nonfarm payrolls increased in January, boosting the case for the Federal Reserve to keep reducing its bond purchase program.

Ten-year yields climbed from almost a three-month low, extending the advance after the Institute for Supply Management’s index of U.S. service industries, the biggest part of the economy, rose more than forecast. Philadelphia Fed Bank President Charles Plosser said he expects economic growth and a lower jobless rate to warrant faster bond-purchase tapering. The Treasury will auction $70 billion in notes and bonds next week.