Treasuries Gain as Slower Growth Raises Fed Tapering Speculation

Treasuries rose on speculation weaker-than-forecast economic growth may prompt the Federal Reserve to reduce its bond-buying program less than some investors anticipated at next week’s meeting of policy makers.

Yields on benchmark 10-year notes dropped from the more than two-year high reached the prior week as reports showed retail sales increased less than forecast, consumer confidence slid more than projected and mortgage applications plunged. The Federal Open Market Committee will decide at its Sept. 17-18 gathering to reduce monthly purchases of Treasuries to $35 billion from $45 billion, according to the median of 34 responses in a Bloomberg survey of economists this month.