Treasuries declined, with the 10- year yield rising from a record low, before the government auctions $99 billion of notes this week. Ten-year Treasuries outperformed similar-maturity German bunds after Moody’s Investors Service lowered the outlook yesterday on the European nation’s Aaa rating to negative. The U.S. will sell $35 billion of two-year debt today, the same amount of five-year securities tomorrow and $29 billion of seven-year notes in two days. The 10-year Treasury yield rose for the first time in three days, climbing two basis points to 1.45 percent at 10:26 a.m. in London, according to Bloomberg Bond Trader data. The price of the 1.75 percent security due in May 2022 fell 6/32, or $1.88 per $1,000-face amount, to 102 24/32. The yield dropped to 1.3960 percent yesterday, the lowest on record. Bunds declined, pushing the yield up seven basis points, or 0.07 percentage point, to 1.25 percent. The yield difference between 10-year Treasuries and their German counterparts narrowed five basis points to 20 basis points, the least on a closing basis since July 10. The U.S. is also rated Aaa by Moody’s, one level higher than its AA+ grade at Standard & Poor’s. To contact the reporter on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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