(Bloomberg) -- Treasuries fell for the first time in three days before the U.S. sells $21 billion of 10-year notes and as signs the economic recovery is gathering pace spurred bets the Federal Reserve will keep reducing debt purchases.

Benchmark yields extended gains as a private report showed more jobs growth last month than forecast before the Fed releases the minutes of its December meeting when it announced plans to cut bond buying starting this month. Economists said a government report this week will show U.S. employers added almost the same number workers in December as the month before while the jobless rate stayed at a five-year low. The three-year yield rose to the highest since September after a $30 billion auction of the securities yesterday attracted the least demand since October.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.