U.S. Long Bonds Climb as Yields at 14-Month High Lure Investors
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Treasury 30-year bonds rose for the first time in three days, reversing earlier losses, as investors bet yields at 14-month highs offered enough of a premium amid speculation the Federal Reserve will slow asset purchases.
Yields had reached the highest since April 2012 on concern this month’s rise would prompt investors to sell even more government debt as a hedge against losses on mortgage bonds. Stocks and commodities tumbled, stoking the refuge appeal of Treasuries, as concern increased that central banks are pulling back on stimulus measures and low financing. Investors snapped up three-year notes after a lackluster auction.