Treasury Yields Resume Climb After Auctions Stir Supply Anxiety

US government bond yields rose as weak demand for a pair of Treasury note auctions suggested investors are anxious about supply on the eve of the next financing quarter.

Yields across maturities rose at least four basis points, reaching the highest levels in more than two months, after the monthly auctions of two- and five-year Treasury notes both drew higher-than-anticipated yields. The benchmark 10-year note’s yield climbed as much as six basis points to nearly 4.3%, the highest level since July 10.

Activity in Treasury options showed traders favoring hedges against a deeper selloff, with focus on a potential ...