Treasuries dropped, pushing yields up from almost a two-week low, as a report showed the U.S. trade deficit narrowed more than forecast in December, which may indicate the economy expanded last quarter.
Ten-year note yields fell earlier as efforts to trim the European Union budget added to concern the region’s economy will struggle to expand, boosting demand for safer assets. U.S. 10- year yields are poised for the biggest weekly decline this year.