Treasury 5-Year Note Yield Drops to Record as Retail Sales Fall

Treasury five-year note yields fell to record lows as an unexpected decline in retail sales for a third straight month raised concern the economic recovery is stalling and drove investors to the refuge of government debt.

Investors seeking the safest assets amid concern global growth is faltering and Europe’s sovereign-debt crisis is worsening also drove yields to all-time lows in the U.K., Canada, France, Germany and the Netherlands. Treasuries gained earlier after Germany’s top court said it will take more than eight weeks to rule on the euro-area’s bailout fund. Federal Reserve Chairman Ben S. Bernanke is scheduled to testify in Washington tomorrow amid speculation he will call for more economic stimulus.