U.S. 10-Year Yields Trade Close to One-Week Low With Fed
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Treasury 10-year yields traded at almost a one-week low on speculation the Federal Reserve’s asset purchases may support bond prices.
Benchmark notes rose for a third day as several policy makers said at the Fed’s last meeting that officials should be ready to vary the pace of its $85 billion in monthly bond purchases. Primary dealers borrowed the most Treasuries from the Fed yesterday in almost a year amid speculation they sought to unwind bets that debt prices would fall. Refuge demand was supported as the euro-area economy will shrink in back-to-back years for the first time, the European Commission said.