Treasuries rose after 10-year notes suffered the biggest one-day decline since October 2011, as the highest yields in 13 months attracted buyers amid speculation whether the Federal Reserve will reduce asset purchases.
Treasury two- and five-year note yields slid to record lows as data showing U.S. employers cut more jobs than forecast last month spurred speculation the Federal Reserve will buy more bonds to stimulate the economy.
Treasuries fell, pushing up two-year yields from a record low, as stocks rose after Genzyme Corp. received a takeover approach and the euro gained after 84 of 91 European banks passed stress tests, fueling risk appetite.
Treasury 30-year bond yields rose the most in a week as Federal Reserve Chairman Ben S. Bernanke said continued accommodative policy will be needed to reduce unemployment further, boosting bets inflation will accelerate.
Treasuries dropped, pushing 30-year bond yields to an eight-month high, as initial jobless claims fell and existing-home sales rose more than forecast, bolstering speculation the economic recovery is building steam.
Treasuries rose, pushing 10-year note yields toward a record low, as Federal Reserve Chairman Ben S. Bernanke said policy makers will discuss at their meeting this month the tools they may need to use to boost the recovery and stand ready to employ them if necessary.