Treasuries Rally as Bernanke’s Comments Boost Demand at Auction
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Treasuries rose, pushing yields to the lowest level since December, as Federal Reserve Chairman Ben S. Bernanke’s comments yesterday that record monetary stimulus is still needed bolstered demand at today’s $21 billion auction of 10-year notes.
Yields on the benchmark debt fell before the central bank’s Beige Book survey showed the economy “generally” grew while slowing in some areas. The extra yield investors demand to hold 30-year bonds instead of two-year debt was almost the highest since March on speculation interest rates will stay low.