Treasury Yields Fall to 2011 Low, Stocks Retreat Following GDP

Treasuries rallied, sending yields on 10-year notes to the lowest level since November, and stocks fell as economic growth trailed forecasts amid speculation lawmakers will reach a compromise to avoid a government default. Gold settled at a record.

The yield on 10-year Treasury note yields declined 15 basis points to 2.79 percent at 4 p.m. in New York, the lowest level since Nov. 30. The Standard & Poor’s 500 Index slipped 0.7 percent and tumbled 3.9 percent this week for its worst slide in a year. Gold futures settled 0.9 percent higher at $1,631.20 an ounce to extend the biggest monthly gain since 2009. The Dollar Index slipped 0.6 percent. Corn and wheat led the S&P GSCI Index of commodities to a 1 percent decline.