Treasury Yields Drop as Fed Buys Longer-Term Securities

Treasury 10-year notes rose as the Federal Reserve bought $4.5 billion of government debt in the first of four rounds of purchases over three days that equals the most by the central bank since December.

Yields declined in the first day of trading after the biggest quarterly rout in the U.S. government-bond market since 2010 as policy makers continue to buy debt to ensure borrowing costs remain low as the economy shows signs of strengthening. The drop came even as a report showed manufacturing in the U.S. expanded at a faster pace than forecast in March.