Treasuries rose, pushing 10-year note yields down for a fourth day, after the U.S. sale of $30 billion in three-year debt attracted the most demand in more than a year from a group of investors that includes pension funds and insurers.
Treasuries rose for a fourth day as the government’s auction of $35 billion in five-year notes attracted stronger-than-forecast demand as investors bet the Federal Reserve will keep short-term borrowing rates low.
Treasuries gained after the government’s $36 billion auction of two-year notes drew the highest level of demand since August 2007 as investors speculated the Federal Reserve will buy more government bonds.
U.S. stocks erased gains as investors sold equities in the final 30 minutes of trading before changes to MSCI Inc. indexes, trimming an earlier rally after improved housing data. Treasuries advanced while Europe’s benchmark gauge fell for the first time in three days.