Treasuries snapped a gain from yesterday before reports that economists said will show personal income and household spending both increased in June, damping the case for more central bank stimulus. Benchmark 10-year yields were nine basis points from a three-week high before the Federal Reserve starts a two-day meeting in Washington. Policy makers will refrain from starting new bond purchases, according to 88 percent of economists surveyed by Bloomberg. Demand for U.S. notes was also damped after U.S. Treasury Secretary Timothy F. Geithner and German Finance Minister Wolfgang Schaeuble backed a commitment by European leaders to do everything needed to defend the euro. The 10-year yield was little changed at 1.51 percent at 9:23 a.m. London time, according to Bloomberg Bond Trader prices. The 1.75 percent note due in May 2022 traded at 102 6/32. The yield dropped four basis points yesterday. Consumer purchases in the world’s largest economy rose 0.1 percent in June, after being unchanged in May, according to economists surveyed before today’s Commerce-Department report. Personal incomes increased 0.4 percent, accelerating from a 0.2 percent gain in May, a separate survey showed. To contact the reporter on this story: Lukanyo Mnyanda in Edinburgh at lmnyanda@bloomberg.net; To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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