Treasuries fall for first time in four days amid bets on taper

Treasuries ended a three-day advance amid speculation a U.S. budget agreement will support the economy and make it easier for the Federal Reserve to start reducing bond purchases.

U.S. 10-year notes headed for the worst annual performance in four years before the government sells $21 billion of them in its last auction of the securities for 2013. Budget negotiators unveiled an agreement yesterday to ease automatic spending cuts by about $63 billion over two years and cut the deficit by $23 billion, ending a three-year cycle of fiscal standoffs.