Treasury Yields Reach 12-Week Low on Wagers Fed to Delay Taper

Treasury 10-year note yields touched the lowest level in 12 weeks amid speculation the partial U.S. government shutdown this month curbed growth and will spur the Federal Reserve to keep buying bonds into next year.

Benchmark notes had the first gain in three weeks after lawmakers ended the 16-day closure and avoided a default. Bills due Nov. 21 dropped to negative levels for the first time in more than two weeks. U.S. government securities are the most expensive in almost three months, based on the 10-year term premium. The U.S. is scheduled to release September’s payrolls report on Oct. 22.