Treasuries Climb for a Third Day on Cyprus Concern as Fed Meets

Treasuries gained for a third day, pushing 10-year note yields to a two-week low, as investors sought refuge on concern that turmoil over bailout out Cyprus will worsen Europe’s sovereign-debt crisis.

The benchmark note’s yield dropped as the Federal Reserve started a two-day meeting amid speculation policy makers will decide to keep buying bonds to support economic growth. Treasuries climbed even after a report showed new U.S. home construction rose in February and building permits increased to the highest level in almost five years. Cyprus’s parliament voted down a levy on bank deposits that’s a bailout condition.