Treasuries Climb as Negative Swiss Rates Fuel U.S. Value Play

Treasuries advanced after the Swiss National Bank’s unexpected decision to scrap its exchange-rate cap and lower already-negative rates drove investors to higher-yielding U.S. debt.

Benchmark 10-year securities yielded 70 basis points more than the average of their Group of Seven peers, according to Bloomberg data. Thirty-year bond yields dropped to a record for a second day as a report showed U.S. wholesale prices fell last month, indicating inflationary pressures eased. The Swiss franc surged to a record versus the euro on speculation the European Central Bank will decide at a meeting this month to buy bonds under quantitative easing.