Treasuries declined, pushing up yields on 10-year notes the most in more than a week, as Germany signaled it may be open to a bailout of Spain, reducing the haven appeal of U.S. government debt.

Yields extended gains after a report showed the cost of living in the U.S. climbed for a second month in September. The difference between yields on 10-year notes and similar-maturity Treasury Inflation Protected Securities, a gauge of expectations for consumer prices, widened to 2.47 percentage points, above the average of 2.17 percentage points since October 2002.

“Folks are a little bit more excited about the prospects for recovery in Europe,” said David Coard, head of fixed-income trading in New York at Williams Capital Group, a brokerage for institutional investors. “Yields are having something of a yield rally.”