Treasuries Rally for First Time in Four Days as U.S. CPI Falls
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Treasuries rose for the first time in four days as consumer prices fell, a sign inflation is in check even as the Federal Reserve prepares to expand bond buying, and no progress was reported on a U.S. budget standoff.
Thirty-year bonds led the rally even as U.S. industrial production climbed. U.S. four-week bill rates turned negative for the first time since January. The Fed bought $1.98 billion in Treasuries due from 2036 to 2042. President Barack Obama and House Speaker John Boehner met for a third time at the White House yesterday to discuss averting the so-called fiscal cliff of automatic spending cuts and tax boosts at year-end.