U.S. 10-Year Yield Falls to 2-Month Low on Fiscal Cliff
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Treasuries rose, with 10-year yields reaching a two-month low, amid speculation U.S. lawmakers face headwinds to agree on measures to avoid the so-called fiscal cliff.
Benchmark yields headed for their biggest weekly drop since August as President Barack Obama’s re-election this week against Republican challenger Mitt Romney fueled bets the Federal Reserve will maintain bond purchases, known as quantitative easing. The fiscal cliff refers to more than $600 billion of tax increases and spending cuts scheduled to take effect automatically next year unless Congress acts. The difference between the yield on the two-year note and the 10-year security narrowed to the least in two months.