Treasuries Advance as Stocks Decline Before Consumer Price Data
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Treasuries rose before data that economists said will show a U.S. cost-of-living gauge held at a four-decade low and as European stock markets fell amid concern the region’s debt crisis may undermine the recovery.
Longer-dated Treasuries led gains as traders cut their inflation expectations. The Federal Reserve said Aug. 10 it will revive Treasury purchases to help spur the economy. Goldman Sachs Group Inc., one of the 18 primary dealers that trade directly with the Fed, said there is a 25 percent to 30 percent chance the U.S. will slide back into a recession.