Treasuries Advance as Consumer Prices Drop Before Fed
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Treasuries advanced after a report showed the cost of living in the U.S. unexpectedly dropped in August as the Federal Reserve decides on the future path of interest rates in a policy meeting today.
Longer-maturity securities led the gains, with the yield gap between two- and 30-year debt narrowing for the first time in six days, amid bets the central bank will maintain its pledge to keep interest rates low for a “considerable time” after it ends bond buying. Gilts fluctuated before Scotland’s vote on independence tomorrow. Inflation-indexed securities have fallen more than twice as much as conventional U.S. debt in the past month.