Treasuries Rise on Refuge Demand as Fed Taper Matches Forecast

Treasury 10-year note yields fell to the lowest level in two months as investors sought a haven from emerging-market turmoil even as the Federal Reserve announced plans for a second reduction in its bond-buying program.

U.S. debt rallied as the Federal Open Market Committee cut monthly purchases to $65 billion from $75 billion and left unchanged a statement that it will probably hold its target interest rate at almost zero “well past the time” that unemployment falls below 6.5 percent, “especially if projected inflation” remains below the committee’s 2 percent goal. Treasuries gained earlier as South Africa’s central bank joined Turkey in raising its benchmark interest-rate in moves that failed to reassure investors, while Russia’s ruble extended its slump to 13 days and Hungary’s forint weakened.