Treasuries Drop for 4th Month as Economy Fuels Fed Taper Views
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Treasuries fell for a fourth straight month, the longest losing streak in more than two years, as signs of a mending economy supported the case for the Federal Reserve to moderate monetary stimulus.
U.S. five- and seven-year note auctions this week attracted the least demand in four years as a report showed the economy expanded at a faster pace in the second quarter than previously estimated. A smaller trade deficit and gains in inventories overshadowed the effects of federal budget cutbacks, damping haven demand. A report Sept. 6 is forecast to show U.S. nonfarm payrolls rose more this month than last.