Treasury Secretary Timothy F. Geithner takes comfort from the government’s ability to borrow at low interest rates as the budget deficit hits a record high. “There’s a lot of confidence” in America’s capacity to meet its commitments, he told Bloomberg Television.
Treasuries rose for a second week as Americans prepared to choose a president who will face unprecedented debt levels and the so-called fiscal cliff, which threaten to derail an economy hobbled by elevated unemployment.
Treasury 10-year note yields fell to within a quarter-percentage point of the record low reached two weeks ago as investors sought safety amid Europe’s debt crisis and signs U.S. economic growth is slowing.
Treasuries had the longest streak of weekly gains in more than 13 years after elections in France and Greece added to concern governments may struggle with deficit- cutting plans used to combat the region’s debt crisis.