Treasuries Gain on Bets Fed Maintains Stimulus After Shutdown

Treasuries gained for the first time in three weeks as investors bet the Federal Reserve will delay tapering bond purchases after Congress’s deal to end a government shutdown pushed the budget battle into next year.

The yield on the benchmark 10-year note dropped to the lowest level in 12 weeks amid speculation the 16-day partial federal closure curbed economic growth. Rates on bills due this month dropped from the highest since issuance as the agreement averted a potential default. The U.S. September payrolls report, postponed by the shutdown, will be released Oct. 22.