Treasuries Gain as Drop in Commodities Damps Inflation Outlook
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Treasuries rose for the first time in four days as declining commodity prices sapped the outlook for inflation and boosted demand for fixed-income securities.
U.S. government bonds extended gains after a report showed manufacturing in the New York region slumped at the fastest pace since the depths of the last recession. A Bloomberg index of commodities dropped to its lowest level since early 2002, weighing on inflation expectations as investors debate when the Federal Reserve will raise interest rates.