Treasuries Rise as Debt-Ceiling Concern Revives Haven Bid

Treasuries rose, with 10-year yields falling from the highest level in a week, as speculation U.S. lawmakers will fail to reach agreement on raising the nation’s debt ceiling revived demand for the safest securities.

Benchmark notes briefly pared gains on a report the House will pass a three-month debt-limit increase next month, only to extend them once more after Speaker John Boehner said a budget that cuts spending must be passed before any long-term deal is reached. The Federal Reserve purchased $1.565 billion of bonds maturing from February 2036 to November 2042 amid its struggle to restore growth in the world’s largest economy.