Treasurys fell, pushing 10-year yields up from the lowest level in almost two weeks, before the U.S. auctions $66 billion of notes and bonds this week.

Three-year yields rose from the least in more than a week before the U.S. sells $26 billion of the notes Monday. It will auction 10- and 30-year securities later in the week. The offerings will be the first of coupon-bearing debt since the Federal Reserve ended a program of monthly bond-buying under quantitative easing on Oct. 29. Treasurys rose last week as data showed wages held in check as the nation added jobs.

“The rally has run its course for now as we face the first set of auctions on the table in a while that haven’t coincided with Fed purchases,” said Larry Milstein, managing director in New York of government-debt trading at R.W. Pressprich & Co. “The market has to digest the supply and will try to cheapen up headed into the auction.”

Ten-year note yields climbed four basis points, or 0.04 percentage point, to 2.34 percent at 12:19 p.m. New York time, according to Bloomberg Bond Trader data. They fell three basis points earlier to 2.27 percent, the lowest level since Oct. 28. The price of the 2.375 percent debt due August 2024 sank 10/32, or $3.13 per $1,000 face amount, to 100 11/32.

Three-year yields added three basis points to 0.95 percent after dropping three basis points earlier to 0.90 percent, the least since Oct. 31. Thirty-year bond yields increased four basis points to 3.07 percent.

Fed Purchases

The Fed’s bond-buying, the first round of which began in December 2008, helped support demand in the Treasury market. They were designed to lower borrowing costs after the credit crisis by inundating the U.S. economy with cheap cash. The central bank bought $3.96 trillion of bonds through three rounds of QE and more than quadrupled its assets to $4.5 trillion.

Policy makers wound the third round of the program down this year from $85 billion a month in November 2013 and decided at last month’s Fed meeting to conclude it, citing a stronger economy.

“Yields are still very low, but we may have found the lows for the time being,” said Justin Lederer, an interest-rate strategist at Cantor Fitzgerald LP in New York, one of 22 primary dealers that trade with the Fed. “The auctions are the highlight of most of the week, but ultimately we have global low inflation that is holding the long end in check.”

Monday’s Auction

At the last three-year note sale in October, investors bid for 3.42 times the amount of debt available. It was the highest level since February at the monthly auctions of the maturity. Notes being sold Monday yielded 0.99 percent in pre-auction trading. The yield at last month’s offering was 0.994 percent.

Three-year notes look relatively attractive relative to the rest of the Treasury market, said William O’Donnell, head U.S. government-bond strategist at Royal Bank of Scotland Group Plc’s RBS Securities unit in Stamford, Connecticut, another primary dealer.

“Today’s auction will go well,” O’Donnell said. “Three- year auctions rarely leave a ripple.”

The amount of notes and bonds being sold this week compares with $67 billion last quarter as three-year note issuance declined by $1 billion. The U.S. is reducing the size of two-and three-year note sales gradually in the next three months, the Treasury Department said in its quarterly refunding statement Nov. 5 in Washington.

Treasurys climbed last week after the Labor Department reported U.S. employers added 214,000 jobs in October, versus a forecast in a Bloomberg survey for 235,000 and a revised September gain of 256,000. The jobless rate fell to 5.8 percent, from 5.9 percent. Average hourly earnings were up 2 percent over the past 12 months, matching September’s level and trailing the 2.1 percent forecast in a Bloomberg survey.