Treasury 2-Year Yield Drops to Record Low as U.S. Growth Cools

Treasuries climbed, pushing two-year note yields to the lowest ever, as a government report showing U.S. economic growth slowed in the second quarter spurred demand for the world’s safest securities.

U.S. notes gained for a fourth month. Economic expansion cooled to a 2.4 percent annual pace last quarter, lower than forecast, Commerce Department data showed. Federal Reserve Bank of St. Louis President James Bullard said yesterday the central bank should resume purchases of Treasury securities if the economy slows and prices fall.