Treasuries Fall as Supply Outlook Compounds Anxiety About Fed

Treasuries fell after the US government signaled that larger auction sizes are on the horizon, while signs of economic resilience hurt the odds a Federal Reserve interest-rate cut in December.

Treasury Department officials, unveiling their plans for financing the US government deficit over the November-to-January period, said they’d begun “to preliminarily consider future increases,” even as they continue to anticipate no changes to note and bond auction sizes “for at least the next several quarters.” The prospect of cuts to long-maturity auction sizes has been a minority view on Wall Street over the past year.

The selloff deepened after a ...