Treasuries Gain as Signs of Global Slowing Boost Demand

Treasuries rose for the first time in three days amid signs Europe’s deepening debt crisis is weighing on growth in the world’s largest economies, burnishing the allure of U.S. government securities’ relative safety.

Benchmark 10-year note yields dropped the most this week as Philadelphia-area manufacturing unexpectedly slid, more Americans sought jobless benefits and China’s manufacturing probably shrank for an eighth month. Moody’s Investors Service downgraded 15 global banks. Fed Chairman Ben S. Bernanke said yesterday policy makers are prepared to consider additional steps to aid the economy.