Treasuries Fall First Time in 7 Days on Manufacturing, Fed Views

Treasuries fell, with 10-year note yields rising for the first time in seven days, after a gauge of manufacturing was stronger than forecast and as a Federal Reserve official said the drop in oil prices will boost the economy.

The benchmark yields increased from an almost a six-week low after the Institute for Supply Management’s factory index was little changed at 58.7 last month, the second-strongest level since April 2011 and compared with the median forecast in a Bloomberg News survey of 58. Fed Vice Chairman Stanley Fischer and New York Fed President William C. Dudley both said the steepest decline in oil prices in five years will stimulate consumer spending. Corporate bond sales also diverted demand from government securities.