U.S. 10-Year Sale's Lowest Yield Since 2012 May Diminish Demand
- Gap between two-, 10-year note yields falls to least since '07
- Fed chair says market turmoil may alter interest-rate path
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Treasury 10-year notes gained, pushing yields to the lowest in a year, as Federal Reserve Chair Janet Yellen stuck to her call for gradual interest-rate increases.
Government bonds are surging this year as turmoil in equity and commodity markets boosts demand for fixed-income assets amid concern that global growth is slowing. Declining inflation expectations have supported longer-dated Treasuries, with the gap between yields on two-year notes and 10-year securities falling below one percentage point to the lowest in more than eight years. An auction of 10-year notes drew the lowest yield since 2012.