By Wes Goodman and Paul Dobson Dec. 11 (Bloomberg) -- Treasuries fell for a third day, with 10-year notes headed for a second week of declines, as stocks rose and traders speculated a report will show U.S. retail sales increased for the third time in four months. The yield on the 10-year note was near the highest level in a month as the MSCI World Index climbed 0.4 percent after Chinese industrial production increased more than economists forecast. The difference in yield between two- and 30-year securities stayed near the most since at least 1980 as investors bet the Federal Reserve will keep interest rates lower for longer, while the government sells more longer-dated debt. “There’s a recovery of risk appetite with Asian markets performing better,” said Christoph Rieger, co-head of fixed- income strategy in Frankfurt at Commerzbank AG. As a result, “yields are back up,” he said. The 10-year note yield climbed 2 basis points to 3.52 percent as of 8:13 a.m. in London, according to BGCantor Market Data. The 3.375 percent security due November 2019 fell 6/32, or $1.88 per $1,000 face amount, to 98 25/32. Thirty-year bonds yielded 4.51 percent, 372 basis points more than the two-year security. The spread was as wide as 374 basis points yesterday. It averaged 132 basis points over the past five years. To contact the reporters on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net; Paul Dobson in London at pdobson2@bloomberg.net

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