Treasury Yield Falls to One-Week Low on Wagers Economy Stumbling

Treasury 10-year note yields dropped to the lowest level in a week as a report showed manufacturing slowed more than forecast in February in the New York region, adding to speculation the U.S. economic recovery is faltering.

The yield gap between U.S. two- and 10-year notes, called the yield curve, narrowed to a one-week low as separate data showed confidence among U.S. homebuilders plunged in February by the most on record. Investors outside the U.S. increased holdings of Treasuries in December by the most since 2011. The Federal Reserve will release minutes tomorrow of its January meeting, when it decided to cut bond-buying a second time.