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Treasury 30-Year Bonds Gain as Inflation Gauge Misses Forecast

Treasury 30-year bonds rose as a report showing the Federal Reserve’s preferred inflation measure increased less than forecast added to speculation that policy makers will boost purchases of longer-term assets.

The long bonds erased earlier losses after Goldman Sachs Group Inc. predicted that the Fed may include them in a purchase effort called quantitative easing. The acquisitions may cause the difference in yield between 10- and 30-year debt to narrow, Francesco Gazarelli, a London-based analyst, wrote in an e-mailed note today.