U.S. Treasuries Fall Before Fed Minutes

Treasuries dropped for the first time in three days on speculation a Federal Reserve report today on its latest meeting will bolster speculation policy makers plan to raise interest rates in 2015.

U.S. government securities lost attraction after a rally yesterday pushed yields toward this year’s low. Buying reached “panic” levels on concern global economic growth is slowing, Steven Englander, the global head of Group of 10 currency strategy at Citigroup in New York, wrote in a report distributed in the U.S. yesterday. The Treasury is scheduled to sell $21 billion of 10-year notes today.

“The yield is too low to buy more,” said Kazuaki Oh’e, a debt salesman at CIBC World Markets Japan Inc. in Tokyo. “The Fed is going to raise interest rates next year.”

Bloomberg

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