Treasuries Drop on Outlook in Worst Quarter Since 2010

Treasuries had their worst quarter since the last three months of 2010 while corporate bonds surged as the world’s largest economy showed signs of improvement.

U.S. government securities lost 1 percent from the start of the year to March 29, Bank of America Merrill Lynch indexes show. An index of investment-grade and high-yield corporate bonds returned 3.2 percent, the most since the third quarter of 2010. Treasuries also trailed German debt, while stocks surged. U.S. payrolls added more than 200,000 jobs for a fourth month in March, the longest such run since 2000, data next week may show.