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Treasuries Rise as Europe Crisis Lifts Demand, QE3 Odds

Treasuries rose, rebounding from yesterday’s biggest slide in almost three weeks, as weaker-than-expected European bond auctions added to concern the region’s sovereign-debt crisis wasn’t resolved, spurring haven demand.

Ten-year yields dropped from the highest level in almost two weeks as investors speculated yesterday’s rise in reaction to minutes of the Federal Reserve’s March 13 meeting that reduced expectations for quantitative easing, or additional asset purchases, won’t be sustained without stronger-than-forecast economic data. The Fed bought $6.62 billion of Treasuries maturing from April 2018 to February 2042 in two operations today.