Treasuries Gain as Fed Seen Announcing More Debt Buying

Treasuries rose, snapping a two-day decline, as economists said the Federal Reserve will announce today a third round of bond purchases known as quantitative easing to spur economic growth.

Benchmark 10-year yields dropped from almost the highest level in three weeks before the Federal Open Market Committee also releases policy makers’ forecasts for unemployment, inflation and the expected path of the federal-funds interest rate over the next several years. Thirty-year bonds advanced before the Treasury sells $13 billion of the securities today. Initial jobless claims rose more than forecast, data showed.