Treasuries Rise as Protests in Libya Spur Demand for Safe Assets

Treasuries rose, with U.S. 10-year yields dropping to the lowest in more than two weeks, as violence in Libya bolstered demand for the relative safety of government debt.

Bonds advanced as a rally in crude oil futures to a 28-month high boosted speculation fuel costs will limit global economic growth. Libyan leader Muammar Qaddafi said he hadn’t fled the country as the political crisis deepened after a crackdown on demonstrators left hundreds dead. The U.S. is scheduled to sell $35 billion of two-year notes today.