Treasuries fell, extending the world’s steepest bond losses this month, as economists said a report today will show U.S. consumer confidence is rising. U.S. debt snapped a gain from yesterday as the government prepared to sell $35 billion of five-year notes today and $29 billion of seven-year securities tomorrow. A separate report will show property values fell, a sign that housing is a weak spot in the expansion, based on Bloomberg News surveys of economists. “There is still upward pressure on yields,” said Chungkeun Oh, a fixed-income trader in Seoul at Industrial Bank of Korea, South Korea’s largest lender to small- and mid-sized companies. “The U.S. economy is doing pretty well.” Oh said he is paying fixed rates and receiving floating in the swaps market to protect his holdings in case yields climb. U.S. 10-year yields increased two basis points to 3.35 percent as of 10:10 a.m. in Tokyo, according to BGCantor Market Data. The price of the 2.625 percent security maturing in November 2020 declined 5/32, or $1.56 per $1,000 face amount, to 93 30/32. Treasuries maturing in 10 years and longer handed investors a 5.2 percent loss in December, the most of 174 bond indexes around the world, according to data compiled by Bloomberg. To contact the reporter on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net. To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net.

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