Treasurys Drop, Led by Long Bond
Treasurys ended a volatile session lower, buffeted by economic and market-based forces.</br></br>In the market's starting hours, prices had been able to hold relatively steady after data showed the service sector contracted more than expected last month. But that buoyancy offered only a temporary reprieve from persistent selling pressure over recent days, as the market was weighed down by a modest pullback in stock prices and turbulence tied to deals in the corporate-bond market.</br></br>Most losses were spread evenly across the curve, but the long bond was a standout loser in the session. The selling led to wider spreads between short- and longer-dated bonds.</br></br>Late afternoon, the benchmark 10-year note was down 21/32, or $6.5625 per $1,000 face value, at 94 26/32. Its yield rose to 3.764% from 3.680% Tuesday, as yields move inversely to prices. The 30-year bond fell 1 20/32 to yield 4.564%.</br></br>Bonds had gotten support as the Federal Reserve bought $7.248 billion in Treasurys maturing between December 2013 and August 2015.On the supply side, the Treasury Department said it would sell $75 billion in notes and bonds next week, a record amount for a quarterly refunding.