U.S. 10-Year Yield at 1-Year High as Sale Bids Lowest Since 2011

Treasuries fell, pushing 10-year note yields to the highest since April 2012, as the U.S. sale of $35 billion in two-year debt attracted the fewest bids for the securities since February 2011.

The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 3.04, compared with an average of 3.72 for the past 10 sales. The benchmark 10-year note yield rose the most in 19 months as a report showed consumer confidence in May reached the strongest in more than five years while Federal Reserve Chairman Ben S. Bernanke said last week the central bank could cut the pace of asset purchases if officials see indications of sustained improvement in economic growth.