Treasuries Rise as Highest Yields in Two Months Renews Demand

Treasury 10-year notes pared a weekly loss as the highest yields since March bolstered demand as investors debated whether the economy is strengthening enough for the Federal Reserve to consider slowing stimulus measures.

Benchmark 10-year yields climbed to the highest level since March 14 yesterday and volatility increased to the most in six months after Fed Chairman Ben S. Bernanke said earlier this week the central bank may cut the pace of asset purchases if policy makers see indications of sustained growth. A government report showed durable goods orders rose more than forecast in April.