Treasuries Gain for Third Week as Voters Elect Budget Standoff

Treasuries posted the longest winning streak since July as voters re-elected President Barack Obama and a Republican House of Representatives, indicating continued budget gridlock, which may restrict economic growth and boost haven demand.

The benchmark 10-year yield fell the most since the week ended Sept. 29 on concern the two sides may struggle to avert $607 billion in automatic spending cuts and tax increases scheduled to take effect starting in January, known as the fiscal cliff. U.S. debt gained even as Treasury auctioned $72 billion of coupon securities. The Federal Reserve will release minutes from its Oct. 24 meeting on Nov. 14, which may show whether the central bank intends to add Treasuries to its mortgage buying.