Treasuries Drop as Factory Data Spur Rate-Increase Bets

Treasuries fell the most in almost two weeks, extending the first monthly drop since March, on speculation U.S. economic growth is robust enough for the Federal Reserve to raise interest rates next year.

Yields on benchmark 10-year notes climbed from a three-week low reached June 27 as measures of U.S. manufacturing showed expansion in June and China’s factory output grew at the fastest pace this year. BlackRock Inc., the world’s biggest money manager, forecast the first increase in borrowing costs for the second quarter of 2015. A report this week may show employers added more than 200,000 jobs for a fifth month.