The difference between yields on two- and 10-year Treasuries narrowed for the first time in three weeks as investors questioned the pace of the economic expansion after reports showed harsh weather weighed on U.S. growth.
Treasury 10-year note yields dropped from the highest level in a week after a report showed harsh weather pushed sales of previously owned U.S. homes in January to the lowest level in more than a year.
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.
Treasuries rose, with 10-year yields dropping to the least in 12 weeks, as a slowdown at Chinese factories and emerging-market losses from the Federal Reserve’s cuts in bond purchases drove demand for the safest assets.
Fidelity Investments, the second- biggest U.S. mutual-fund company, appointed Robert P. Brown president of its bond unit to replace Christopher Sullivan, who was named head of institutional fixed-income.
Treasuries fell as service-industry growth fueled speculation the Federal Reserve will taper stimulus earlier than expected, while oil slid on forecasts for growth in inventories. U.S. shares dropped and European stocks retreated as the growth outlook for the euro region was trimmed.