Treasuries Rise as Note Auction Draws Highest Demand Since 2007
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Treasuries gained after the government’s $36 billion auction of two-year notes drew the highest level of demand since August 2007 as investors speculated the Federal Reserve will buy more government bonds.
Bonds rose earlier as Anglo Irish Bank Corp.’s senior debt was cut to the lowest investment grade rating by Moody’s Investors Service, encouraging demand for safety. The two-year notes sold today drew a yield of 0.441 percent, the lowest since the government began selling the securities on a quarterly basis in September 1974. The U.S. will sell $35 billion in five-year notes tomorrow.