Treasuries Rally Most in 4 Months as European Stress Adds Allure
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Treasuries rose, with 10-year yields posting the biggest drop in almost four months, as re-emerging financial stress in Europe spurred refuge demand.
Benchmark 10-year yields touched a five-week low on concern Banco Espirito Santo SA, Portugal’s second-biggest lender, would become embroiled in the financial woes of a parent company after a missed payment on short-term debt by a member of the banking group. Treasuries gained as minutes of the Federal Reserve June policy meeting eased concern the central bank would move up its plans for an interest-rate increase next year. Fed Chair Janet Yellen is set to testify before Congress for two days commencing July 15.