Treasuries Gain Before Fed Buys; Yields Approach Two-Week Low
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Treasuries rose as the Federal Reserve prepared to buy long-term debt today after saying improvements in the economy fell short of what’s needed to scale back its bond-purchase program.
Ten-year yields approached a two-week low after Vincent Reinhart, who was the Fed’s chief monetary-policy strategist from 2001 until September 2007, said unemployment may lead the central bank to extend its purchases beyond the current plan to scoop up $600 billion of debt. A report today is forecast to show that private employment rose by the most since November 2007 last month. The notes also rose as the MSCI World Index of stocks fell for the first time in four days.