Treasuries Rise After Fed Officials Back More Economic Stimulus

Treasury 10-year note yields fell to almost the lowest level this month as Federal Reserve officials suggested policy makers will maintain the current pace of bond purchases to sustain momentum in the economic expansion.

Bonds rose for a second day after Federal Reserve Bank of New York President William C. Dudley said policy makers must “forcefully” push against economic headwinds. Another regional Fed bank president, Atlanta’s Dennis Lockhart, said policy should focus on creating a more dynamic economy. Debate over the U.S. federal budget and the debt ceiling is also renewing concern of a government shutdown, debt default or near-miss that may roil financial markets.