NEW YORK: US Treasuries prices fell on Thursday with benchmark yields hovering near one-week highs as investors sold some debt in advance of a $13 billion 30-year bond auction.
Investors also awaited the release of minutes from the Federal Reserve's September policy meeting due at 2 p.m. (1800 GMT).
They expect the minutes to provide details about why the central bank's policy-setting group, the Federal Open Market Committee, left interest rates unchanged in September, to the surprise of many investors and economists.
"People will be looking for any specific words pointing in support of or against the increase to gauge just how close they were to increasing," said Justin Hoogendoorn, fixed income strategist at BMO Capital Markets in Chicago.
Despite comments by Fed members including Chair Janet Yellen saying the US central bank would end its near-zero interest rate policy by year-end if the economy showed further improvement, expectations that the Fed will lift rates this year have faded after a government report last Friday showed the US economy added far fewer jobs than expected in September.
While the latest jobs report along with concerns about slowing global growth has traders expecting a rate hike no sooner than March 2016, the minutes from the FOMC meeting might suggest a December rate hike could still be on the table.
The chance that the minutes may renew the possibility of a hike by year-end will, according to analysts, keep demand for Treasuries weak while the US Treasury Department completes this week's debt sales with a $13 billion auction of 30-year bonds.
The latest auction comes after a mediocre auction of three-year notes on Tuesday and a sale of $21 billion of 10-year notes to strong investor demand on Wednesday.
On the open market, benchmark 10-year Treasuries were down 3/32 in price to yield 2.072 percent, up 1 basis point from late Wednesday.
On Tuesday, the 10-year yield hit a one-week high of 2.086 percent.
The 30-year bond was down 7/32 in price to yield 2.897 percent, up 1 basis point from Wednesday.
<Center><b><i>Copyright Reuters, 2010</b></i><br></center>
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