Treasuries drop first time in 6 days on outlook for Fed policy

Treasuries fell for the first time in a week before Federal Reserve policy makers begin a two-day meeting tomorrow at which they are forecast to further scale back bond purchases they have used to support the economy.

The 30-year bond yield rose from a nine-month low as stock futures gained before a nonfarm payrolls report this week forecast to show employees added the most jobs since November. The Treasury is forecast to borrow just more than $130 billion in coupon-bearing debt this quarter and may cut back on two- and three-year note auction sizes, according to Wrightson ICAP. Yields dropped last week amid simmering conflict between Russia and Ukraine.