Treasuries Fall Second Day as Economy Expands More Than Forecast
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Treasuries dropped for a second day as a report showed the economy expanded last quarter faster than previously forecast, boosting speculation the Federal Reserve will reduce the pace of bond purchases as soon as next month.
Benchmark 10-year yields pared gains on reports a fifth U.S. destroyer was headed to the eastern Mediterranean before a potential strike on Syria. The economy grew at a 2.5 percent annual pace in the second quarter, more than forecast and up from the previous estimate of 1.7 percent, while weekly jobless claims fell more than projected. The U.S. plans to auction $29 billion of seven-year debt after a sale of five-year notes yesterday drew the least demand in four years.