Treasuries were the world's worst-performing bonds this year,before the Federal Reserve meets today and tomorrow to decidewhether to trim its debt-buying program.

U.S. government securities due in a decade and longer havefallen 11 percent from January 1, 2013, to yesterday, the biggestloss among 144 debt indexes tracked by Bloomberg and the EuropeanFederation of Financial Analysts Societies. The Treasury isscheduled to sell $32 billion of two-year debt today, in the firstof four note auctions this week.

“I don't think the Fed will start to taper,” said Kei Katayama,who buys non-yen debt in Tokyo for Daiwa SB Investments Ltd., whichmanages the equivalent of $47.9 billion. “The economic data aremixed. Yields may go slightly lower.” Katayama said the duration ofhis holdings is “slightly” longer than the benchmark he uses togauge performance.

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