Treasuries Fall as Report Shows Services Expansion Tops Estimate

Treasuries fell as a report showed service industries expanded more than forecast in July, adding to signs the U.S. economy is improving and boosting speculation the Federal Reserve may reduce its stimulus program by year-end.

Benchmark 10-year notes slid for the past two weeks as traders bet growth is fast enough to allow the Fed to trim bond buying, even after data showed employers added fewer jobs than economists forecast last month. The unemployment rate dropped to the lowest level since 2008. Fed Bank of Dallas President Richard Fisher said the central bank is closer to slowing its purchase program. The U.S. is scheduled to sell $72 billion of three-, 10- and 30-year securities this week.