Treasuries fell on Thursday after President George W. Bush announced a plan to help some homeowners with subprime mortgages by freezing their interest rates, discouraging investors from buying U.S. debt.

Signs from the Federal Reserve also point to a rate cut at the next meeting of the Federal Open Market Committee next week, to prevent the economy from heading toward a recession.

The 10-year notes were down 20/32 in price to yield 4.029 percent, up from late Wednesday. 3:28 p.m.

Two year notes were down 8/32 to yield 3.051

Looking toward Friday, the Labor Department will release its report on non-farm employment for November.