Treasury Yields Drop Most in Three Weeks Amid Concern on Europe

Treasuries rose, pushing 10-year note yields down the most in three weeks, as an unprecedented proposed levy on bank deposits in Cyprus threatened to reignite the euro region’s debt crisis, boosting demand for a refuge.

The 10-year yields traded below 2 percent for a second day before the Federal Reserve begins a meeting tomorrow amid speculation policy makers will decide the central bank should keep buying bonds to spur economic growth. Euro-area finance ministers sought to tax bank deposits in Cyprus as part of a plan for a 10 billion-euro ($13 billion) bailout of the nation.