Treasuries Drop as Unemployment Rate Unexpectedly Falls
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Treasuries fell for the first time in three weeks after a report showing the U.S. unemployment rate unexpectedly declined renewed concern the Federal Reserve’s commitment to strengthen the economy may stoke inflation.
The yield on the 10-year note rose to the highest in almost two weeks after the Labor Department said yesterday that the jobless rate dropped to 7.8 percent in September, the lowest since President Barack Obama took office in January 2009. The difference in yields between 10-year notes and inflation-protected debt increased to the most in almost three weeks. The U.S. will sell $66 billion in notes and bonds next week.