Treasuries Rise as Reduced Fed Rate Concern Fuels Bond Sale Bids

Treasuries rose as the U.S. sale of $13 billion in 30-year bonds drew higher-than-average demand a day after Federal Reserve minutes damped bets policy makers would accelerate interest-rate increases.

Benchmark 10-year yields reached an almost four-week low and stocks dropped the most in two months as central bank meeting minutes indicated a rise in policy makers’ median projection for the main interest rate overstated the likely speed of policy tightening. The bond sale drew the lowest yield at an auction of the security since June and the bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, was 2.52, compared with an average of 2.36 for the previous 10 sales.