Treasuries Rise 3rd Day on Fiscal-Cliff Talks Concern
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Treasuries advanced for a third day on speculation talks to avert the U.S. fiscal cliff of tax increases and spending reductions are making little headway, underpinning demand for the safest assets.
Ten-year yields dropped to the lowest level in a week as Erskine Bowles, co-chairman of President Barack Obama’s 2010 fiscal commission, estimated there is a one-third probability of a budget deal by the end of this year. The U.S. is scheduled to sell $35 billion of five-year notes today after demand at a two-year auction yesterday matched a record high. The Federal Reserve is acquiring as much as $18.36 billion in six Treasury purchases this week, including two operations today.