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Treasury Rates Jump on Bills Due on Debt Deadline as Gross Buys

Treasuries fell and rates surged on bills maturing on the Oct. 17 deadline projected for when the U.S. reaches its borrowing capacity as investors avoided the securities with the risk of default rising.

Yields on benchmark 10-year notes increased for a second day as the U.S. auction of $21 billion of the debt drew lower-than-average demand. They extended gains after minutes of the Federal Reserve’s last meeting showed most policy makers said the central bank was likely to reduce the pace of its bond purchases this year after it refrained from tapering in September. Treasuries rose earlier after a White House official said Janet Yellen would be nominated to head the Fed.