Treasuries Fall as U.S. Sets Auction Amounts, May Expand TIPS
• BloombergTreasuries declined for a third day after the U.S. announced it will sell a record $75 billion of notes and bonds at next week’s auctions and indicated plans to expand issuance of inflation-indexed securities. Thirty-year bond yields touched their highest levels in a week as the government signaled it’s considering the introduction of 30-year Treasury Inflation Protected Securities and ending 20-year TIPS as it finances unprecedented budget deficits. U.S. service industries contracted at a faster pace in July, suggesting recovery from the deepest slump since the Great Depression may be slow. “The curve is steepening as a lot of people want to stay away from the belly and the long end,”
