Treasury Rally Pushes Yields to Record Lows on Slowing Economy

Treasuries surged, pushing yields on five-, seven- and 10-year notes to historic lows, as investors sought a refuge on concern U.S. growth is slowing and Europe’s sovereign-debt crisis is getting worse.

Yields on 30-year bonds dropped this week the most since 2008 after the Federal Reserve said earlier in August it would keep borrowing costs unchanged until at least mid-2013 and Standard & Poor’s lowered the top U.S. credit rating. The rally in bonds indicates Fed Chairman Ben S. Bernanke may signal at a conference on Aug. 26 in Jackson Hole, Wyoming, that additional measures to lift the economy are needed.