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Treasuries Yield Most Over Bunds in 15 Years

Treasury 10-year notes offered the highest yields over similar maturity German bunds in 15 years with the Federal Reserve and European Central Bank outlining diverging paths on monetary policy.

The difference increased to as much as 1.45 percentage points, or 145 basis points, after European Central Bank President Mario Draghi gave his strongest signal yet at the end of last week that officials are moving closer to asset purchases. Fed Chair Janet Yellen reiterated that policy makers may raise interest rates sooner than investors anticipate. The U.S. will auction $29 billion of two-year debt tomorrow, the first of four note sales this week for a combined $106 billion.