Treasury 10-year notes declined for the first time in four days as the U.S. prepared to auction $66 billion of debt this week. U.S. government securities also declined as European stocks advanced, damping demand for the safest assets. Ten-year Treasury yields slid five basis points yesterday on speculation a 100 billion-euro ($125 billion) bailout of Spanish banks will fail to contain Europe’s debt crisis. The U.S. 10-year yield climbed three basis points, or 0.03 percentage point, to 1.61 percent at 8:09 a.m. London time, according to Bloomberg Bond Trader data prices. The 1.75 percent note due in May 2022 dropped 7/32, or $2.19 per $1,000-face amount, to 101 1/4. The U.S. will sell $32 billion of three-year notes today, $21 billion of 10-year notes tomorrow and $13 billion of 30-year bonds on June 14. The three-year Treasuries being sold today yielded 0.365 percent in pre-auction trading, compared with 0.36 percent at the previous offering on May 8. Investors bid for 3.65 times the amount for sale last month, versus an average of 3.38 for the previous 10 auctions. To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net;

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