Treasury 10-year notes declined for a third day as gains in stocks and higher-yielding securities damped demand for the safest assets. Benchmark yields climbed to the highest level in a week before an industry report that economists said will show U.S. companies increased payrolls last month. An index of stocks from around the world rose to the highest in more than 4 1/2 years. Federal Reserve Chairman Ben S. Bernanke and Vice Chairman Janet Yellen both said over the past two weeks that the central bank should maintain stimulus efforts. “There’s ample liquidity in the market as central banks pursue accommodative policy and that drives demand for riskier assets,� said Nick Stamenkovic, a strategist at RIA Capital Markets Ltd. in Edinburgh. “People are waiting for key data this week, and if they show sign of stabilization or improvements, yields will rise from here.� Treasury 10-year note yields increased one basis point, or 0.01 percentage point, to 1.91 percent at 11:06 a.m. in London, according to Bloomberg Bond Trader data. The rate rose to 1.92 percent, the highest level since Feb. 25. The 2 percent security due February 2023 fell 1/8, or $1.25 per $1,000-face amount, to 100 25/32. The MSCI All-Country World Index (MXWD) increased for a third day, rising 0.3 percent in London. It’s heading for the highest close since June 2008. The Dow Jones Industrial Average (INDU) climbed to a record yesterday, and has returned 9.3 percent this year, according to data compiled by Bloomberg. Economic Data Treasuries fell yesterday as a report showed U.S. services industries expanded at the fastest pace in a year. U.S. companies added 170,000 jobs in February, following a 192,000 increase the previous month, according to a Bloomberg News survey of economists before today’s report from ADP Research Institute. Factory orders fell 2.2 percent in January from December, when they increased 1.8 percent, a separate survey showed before the Commerce Department releases the figures at 10 a.m. in Washington. The Fed is scheduled to release its Beige Book report on the economy today. The Labor Department’s monthly jobs report to be released on March 8 will show the U.S. unemployment rate was unchanged at 7.9 percent in February, based on responses from economists. Yellen said this week the central bank should continue its monthly bond buying while tracking the costs of the program. Bernanke in congressional testimony last week defended the Fed’s bond purchases, saying the benefits of reducing borrowing costs and fueling growth outweigh any potential drawbacks. Fed Purchases The central bank is purchasing $85 billion of Treasury and mortgage debt a month to put downward pressure on yields. It has kept its benchmark target for overnight lending in a range of zero to 0.25 percent since 2008. Federated Investors Inc. (FII), the Pittsburgh money manager with $379.8 billion in assets, “nudged up� high-yield bonds in its recommended portfolio allocations, Mark E. Durbiano, a senior portfolio manager, wrote on the company’s website this month. The improving U.S. economy and the strength of the nation’s companies will support the securities, the report said. U.S. government debt has slid 0.4 percent this year, versus a 2.1 percent gain for high-yield bonds, after accounting for interest, according to Bank of America Merrill Lynch indexes. To contact the reporter on this story: Anchalee Worrachate at aworrachate@bloomberg.net; Wes Goodman in Singapore at wgoodman@bloomberg.net To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net

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