Treasuries Gain Amid Low-Rate Prospects as Demand Climbs at Sale
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Treasuries rose amid speculation the absence of inflation will allow the Federal Reserve to reiterate at the conclusion of a two-day meeting tomorrow that borrowing rates will remain low even if policy makers slow bond purchases.
The government’s sale of $32 billion of two-year notes drew the strongest demand since January as investors bet rates will remain low. Treasury notes due in five to 10 years led gains as traders weighed whether the Fed will begin reducing $85 billion in monthly bond buying this week or at its January or March meetings.