U.S. Government Bonds Rise After Treasury Department's 30-Year Auction

(Bloomberg) -- U.S. government securities rose after the U.S. Treasury auctioned $5 billion of 30-year bonds, on signs inflation pressures may be easing.

The 30-year security gained after dropping the most in almost two weeks yesterday when the Federal Reserve held borrowing costs at 5.25 percent and said inflation remains the ``predominant policy concern.'' Longer-maturity bonds are more sensitive to inflation expectations than shorter-dated notes. Treasuries also benefited as stocks dropped the most in almost two months, traders said.


Read more at Bloomberg Bonds News