Bonds News

Treasuries pared losses as German and French finance ministers meet before a summit of regional leaders to discuss ways to contain the European debt crisis, stoking demand for government debt.

The riskiest part of the global corporate bond market is driving relative yields on company debt to the widest levels in more than three months as speculation mounts that the economic recovery is faltering.

Bond traders are cutting expectations for U.S. inflation by the most since December, providing Federal Reserve Chairman Ben S. Bernanke the scope for additional stimulus as the central bank’s current effort winds down.