Treasury 30-year bonds advanced before a $16 billion sale of the securities as investors sought the safest assets amid concern the euro region’s debt crisis isn’t yet resolved.
Treasuries rose, pushing yields toward a three-week low, as stock losses and violence in Libya bolstered demand for the safest assets.
Confidence in Prime Minister Shinzo Abe’s stimulus policies is faltering after foreign investors sold $24.2 billion of Japanese shares this year, leaving them the cheapest relative to bonds in 18 months.
Treasuries headed for a third weekly gain before a U.S. report that economists said will show manufacturing grew at the slowest pace in 10 months in September.
"I do not think investors will just keep buying bonds thinking it's the end of the world."
- Satoshi Okumoto on Oct 16, 2014