Treasury Bonds Rise for Second Week on Mixed Economic Signals

Treasury bonds rose for a second week, pushing the yield to the lowest level since June, as signs of uneven economic growth and escalating tension between Russia and Ukraine drove investors to the safety of U.S. debt.

Government securities gained as reports showed that the economy grew at the slowest pace in the first quarter since the last three months of 2012 and unemployment claims rose to a nine-week high last week even as the economy added the most jobs in April since January 2012. The Federal Reserve pressed ahead with reductions to its monthly bond-buying while holding its short-term interest-rate target at virtually zero. The Treasury will sell $69 billion of notes and bonds next week.