U.S. 10-Year Yields Fall to 12-Week Low on Emerging Markets, Fed

Treasuries rose, with 10-year yields dropping to the least in 12 weeks, as a slowdown at Chinese factories and emerging-market losses from the Federal Reserve’s cuts in bond purchases drove demand for the safest assets.

U.S. debt rallied as a government report showed the Fed’s preferred gauge of inflation was up 1.1 percent in December from a year earlier, below the central bank’s 2 percent target for a 20th month. The 0.39 percentage point drop in 10-year yields in January is the most since August 2011 when Standard & Poor’s downgraded the U.S. credit rating to AA+, prompting the stock market to plunge and investors to seek a haven in Treasuries.