Treasuries Rise Second Day as Lawmakers at Debt Impasse
This article is for subscribers only.
Treasury 10-year notes gained for a second day as investors sought the safest assets on speculation a disagreement among U.S. political leaders over the nation’s debt ceiling will derail the economy.
Yields on the benchmark note touched a one-week low before President Barack Obama warned “markets could go haywire” if the debt limit isn’t raised. Republican leaders responded by calling for spending cuts. U.S. government debt extended gains after Federal Reserve Chairman Ben S. Bernanke said the benefits of quantitative easing may vary through time and the central bank is continuing to monitor the impact of its bond purchases. The central bank purchased $1.47 billion of Treasuries in the first of daily buybacks this week.