Treasuries Fall as Bernanke Says Deficit Deal Aids Growth

Treasuries fell as Federal Reserve Chairman Ben S. Bernanke said an agreement to reduce long-term U.S. deficits may remove an impediment to economic growth and crimp haven demand.

U.S. 10-year note yields rose to a one-week high after a report showed housing starts unexpectedly increased last month to a four-year high. Volatility in U.S. government bonds dropped to the lowest since 2007. The central bank purchased $1.85 billion in longer-term debt today as part of its so-called Operation Twist program to boost growth.