Treasuries Rise, Pushing 10-Year Yield Down From Five-Week High

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Treasuries advanced, pushing the 10-year note yield down from a five-week high, as the U.S. government posted a smaller monthly budget deficit and the Federal Reserve bought $3.4 billion in U.S. debt.

The extra yield investors demand to hold 10-year notes over 2-year securities dropped from the highest level since the central bank’s August meeting as demand for the longer maturity revived. Benchmark 10-year notes fell earlier today as China’s industrial output increased last month more than forecast.