Treasury Yield Is Near 17-Month Low as Fed, Japan Investors Buy

Treasury yields were near a 17-month low as the Federal Reserve prepared to buy the securities today and Japan said its purchases of overseas debt rose to a record.

U.S. bond-market rates will stay low as long as the economy performs below expectations, said Paul McCulley at Pacific Investment Management Co., which runs the world’s biggest bond fund. The Fed plans to purchase Treasuries due from August 2016 through August 2020 as part of its plan to spur the economy by keeping borrowing costs down.