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By Bloomberg

Add demand for corporate bonds to the list of reasons that Treasuries are falling.

U.S. government securities headed for a fifth straight weekly decline as company debt sales including $7.8 billion from Siemens AG attracted investors. Goldman Sachs Group Inc., Comcast Corp., McDonald’s Corp. and Volkswagen AG also held multi-billion-dollar debt offerings.

Even though U.S. data are mixed, a Morgan Stanley index shows the Federal Reserve will still raise interest rates in about seven months. A record-setting stock rally is helping sap demand for government debt, while advancing oil prices are raising concern inflation will quicken.

After the Fed stopped buying bonds in October, issuers are relying on private investors to absorb all of the supply of government and corporate debt.

“A big buyer is gone,” said Ali Jalai, a bond trader at Bank of Nova Scotia in Singapore. “Supply’s weighing on the market, and there’s a lot of corporate supply, too.”

The benchmark U.S. 10-year yield was little changed at 2.19 percent as of 2:07 p.m. in Tokyo, according to Bloomberg Bond Trader data. The price of the 2.125 percent note due in May 2025 was 99 13/32. A fifth weekly decline would be the longest run of losses in almost two years.

Surging Sales

U.S. corporate bond sales have totaled $830.1 billion this year, versus $714.4 billion in the second half of 2014, according to data compiled by Bloomberg.

The Treasury Department is scheduled to sell two-, five- and seven-year notes as well as two-year floating rate securities over three days starting May 26. It auctions this combination of securities once every month.

Investor demand for higher-yielding assets outside government bonds is spreading to stocks, helping send the Standard & Poor’s 500 Index to record close Thursday.

April’s economic data have been mixed. U.S. retail sales and industrial production were less than economists surveyed by Bloomberg forecast, while the increase in housing starts was more than double the projected level.

Crude oil has advanced 44 percent from 2015’s low set in March.

The economy is strong enough to lead the Fed to raise interest rates, probably this year, said Kazuaki Oh’e, a debt salesman at CIBC World Markets Japan Inc. in Tokyo.

The central bank bought government and mortgage debt for almost six years to support the economy, ending the purchases in October as the labor market improved.

“People are starting to count down to the U.S. rate increase,” Oh’e said.