Treasuries advanced for the first time in three days as a $24 billion sale of 10-year securities at yields almost at the highest level at an auction of the maturity in two years boosted demand.

The benchmark notes gained after the auction produced a yield of 2.620 percent, compared with a forecast of 2.635 percent in a Bloomberg News survey of eight of the Federal Reserve’s 21 primary dealers. Indirect bidders, an investor class that includes foreign central banks, purchased 46.3 percent of the notes, compared with an average of 37.1 percent for the past 10 sales. Treasury will auction $16 billion in 30-year bonds tomorrow.

“Demand at the auction from investors was there across the board,” said Thomas di Galoma, head of U.S. rates sales at ED&F Man Capital Markets in New York. “Generally, it was a pretty decent auction.

Canadian Dollar Falls to Four-Week Low Amid Speculation on Fed

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