Treasuries Fall as Projected Jobs Strength Damps Refuge Demand

Treasuries fell for a second day before a report forecast to show strength in the U.S. labor market, damping refuge demand as the Federal Reserve considers an interest-rate increase for later this year.

Benchmark 10-year yields rose and equities gained as futures markets are pricing in a 57 percent chance of rates rising by September even as a Fed measure of inflation expectations, known as the five-year, five-year forward, dropped to the lowest level since 2001. The new-year rally in global sovereign bonds paused after driving yields to record lows as plunging oil prices lowered inflation projections.