Treasury Yields 3 Basis Points From 2011 Low Before Homes Data

Treasury yields were three basis points away from the year’s low before a report forecast to show U.S. housing starts near recession levels, adding to concern about the recovery and boosting demand for the safety of bonds.

The Federal Reserve will today buy $5 billion to $7 billion of notes as part of its $600 billion purchase program to cap borrowing costs and shore up the economy. Demand for government debt was also bolstered as traders reduced their prediction for inflation to a three-month low, which would help preserve the purchasing power of bonds’ fixed income.