Treasuries Rise Second Consecutive Week on Refuge Demand

Treasuries gained for a second straight week as European leaders struggled to resolve the region’s debt crisis and reports suggested slower U.S. growth, sustaining the appeal of the world’s safest assets.

Benchmark 10-year notes pared gains after a stress test showed Spanish banks’ capital shortfall is less than some traders speculated. Yields dropped to three-week lows earlier as American consumer spending and personal incomes stagnated. U.S. government securities returned 0.6 percent this quarter, after gaining 3 percent in the prior three months, Bank of America Merrill Lynch indexes show.