Treasuries Rally as Fed Notes International Risks to Economy

Treasuries rallied after the Federal Reserve maintained its pledge to be “patient” on raising interest rates as it cited international risks to the economy while boosting its assessment of U.S. growth.

U.S. 30-year bond yields reached a record low as policy makers said inflation will be pushed lower by weak oil prices before gradually rising. Greek stocks and bonds slumped on concern the nation’s newly elected government will seek to overturn austerity measures, adding to signs the global economic slowdown is catching up with the U.S. Even with the rally, U.S. 10-year notes yields are higher than comparable-maturity debt of 18 development nations, fueling relative-value demand.