U.S. 2-, 5-Year Yields Fall to Record Lows on Fed-Buy Outlook

Treasury two- and five-year note yields slid to record lows as data showing U.S. employers cut more jobs than forecast last month spurred speculation the Federal Reserve will buy more bonds to stimulate the economy.

Ten-year note yields fell to the lowest level since January 2009 as investors bet the floundering labor market signals weaker-than-expected growth in the broader economy. Yields have slid this week as investors speculated the Fed will purchase more assets, a strategy called quantitative easing. Bank of America Corp. said very “strong data” would be needed to stop the central bank from launching a purchase program in November.