Treasuries Advance as Yield Advantage Approaches 15-Year High
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Treasuries rose, advancing for the first week in three, as U.S. 10-year note yields approached the highest level in 15 years versus their German-government peers.
U.S. bonds extended gains after an Institute for Supply Management index of American manufacturing fell more than forecast and construction spending unexpectedly dropped. German 10-year bund yields slid to a record after European Central Bank President Mario Draghi said he can’t rule out deflation, fueling speculation the ECB will soon start buying government bonds. The dollar rose versus all 16 major peers and reached parity with the Swiss franc for the first time since 2010.