Treasury Yield Drops Most Since May on Fed Wagers, Cliff
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Treasury 10-year yields slid the most in five months as President Barack Obama’s re-election bolstered bets Federal Reserve Chairman Ben S. Bernanke will keep supporting the economy and the so-called fiscal cliff of spending cuts and tax increases loomed.
Bonds stayed higher even after the U.S. sale of $24 billion in 10-year notes drew less-than-average demand. Yields on the debt are at a month low as investors refocus on the U.S. budget debate and Europe’s debt crisis. Republicans held the House of Representatives and Democrats the Senate. Treasuries have returned 1.8 percent in 2012 and 15 percent since Obama took office in 2009, Bank of America Merrill Lynch indexes showed.