Treasury Notes Drop Before Auction on Bets Greece Plan Will Pass

Treasury notes declined before today’s $35 billion auction of five-year securities on speculation Greece’s lawmakers will approve austerity measures to assure a financial bailout.

Benchmark 10-year debt pared a monthly gain on reduced concern Europe’s sovereign-debt crisis will undermine the global economic recovery. A record low yield at yesterday’s auction of two-year notes drew the lowest demand in more than three years from an investor class that includes foreign central banks.