Treasuries Fall First Time in Three Days Amid Speculation on Fed

Treasuries declined for the first time in three days as investors weighed whether the U.S. economy was strong enough for the Federal Reserve to reduce bond purchases designed to hold down borrowing costs.

U.S. bonds slipped after homebuilder confidence climbed and a gauge of New York manufacturing rose before the Fed opens a two-day meeting in Washington tomorrow. Fed Chairman Ben S. Bernanke said in May the central bank could reduce its $85 billion in monthly bond purchases if there’s sustainable improvement in employment.