Treasuries Advance as Concern on Cyprus Fuels Demand for Safety
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Treasuries climbed, with 10-year notes poised for a second weekly gain, as concern that Cyprus’s banking crisis will worsen the euro area’s sovereign-debt turmoil stoked demand for the refuge of U.S. government debt.
Bonds rose even after data showed the U.S. economy is improving. The U.S. sold 10-year inflation-linked notes at a negative yield for an eighth straight time amid skepticism that monetary stimulus by the Federal Reserve under Chairman Ben S. Bernanke won’t fuel inflation. Treasuries gained as the European Central Bank threatened to cut Cypriot banks off from funds unless the nation agrees on a bailout.