Treasuries Decline as Reports Suggest Support for QE Tapering

Treasuries fell for the first time this week as better-than-forecast data on jobless claims and regional manufacturing suggested a strengthening economy will allow the Federal Reserve to slow asset purchases.

U.S. debt remained lower after the nation’s Aaa credit rating was revised to stable from negative by Moody’s Investor’s Service. Benchmark 10-year note yields touched a two-week low yesterday after Chairman Ben S. Bernanke said the central bank’s bond buys “are by no means on a preset course.” Speaking today, he said it was “way too early to make any judgment” about tapering starting in September. The Treasury sold 10-year inflation-protected securities with a positive yield for the first time in almost two years.