Treasuries Advance as Fed’s Lockhart Cites Economic Headwinds

Treasuries rose for a second day as Federal Reserve Bank of Atlanta President Dennis Lockhart said the U.S. recovery faces headwinds, reducing speculation the central bank will cut its $600 billion debt-buying program.

U.S. six-month bill rates fell today to a record low amid a scarcity of short-term debt. Two-year notes gained, pushing yields to a one-week low, as Chicago Fed President Charles Evans said the amount to be purchased in the central bank’s stimulus program may be “about the right number.” Fed Chairman Ben Bernanke is scheduled to speak at 7:15 p.m. in Atlanta.