Treasuries Surge by Most in Two Months on Global Growth Concern
- U.S. 10-year note yield tumbles to lowest level in two weeks
- Bonds gain even as Fed official says June rate boost possible
Treasuries surged, with 10-year note yields falling by the most since March, after data from China to Europe pointed to a slowing global economy still in need of central-bank support, stoking demand for the world’s safest debt.
Benchmark 10-year yields fell to the lowest in two weeks as the European Commission cut its inflation forecast and warned of slower-than-anticipated growth across the 19-nation euro area. In the U.K., manufacturing unexpectedly shrank for the first time in three years, while data from China showed a contraction that underscored weaknesses in the world’s No. 2 economy. Treasury yields dropped even after a Federal Reserve official said U.S. financial markets may be underestimating the odds that interest rates will rise in June.