Treasuries Rally for Fourth Week on Fed Debt-Purchase Outlook

Treasury notes rallied for a fourth week as data showing U.S. employers cut more jobs than forecast last month increased speculation the Federal Reserve will start a new program of buying bonds to stimulate the economy.

Yields on two- and five-year notes reached record lows yesterday after the government said employers cut 95,000 jobs, fueling concern the economic recovery is stalling. Fed Chairman Ben S. Bernanke said Oct. 4 that quantitative easing, a strategy in which the Fed purchases assets, would probably spur growth. Inflation slowed last month, a report next week may show.