Treasury two-year notes rose, pushing yields to the lowest in a month, as investors dumped riskier assets and a government report showed orders for durable goods fell more than forecast in May.
U.S., European and Asian stocks fell and the perceived risk of owning U.S. corporate bonds rose to a 10-month high in the derivatives market on concern over the extent of investor losses arising from defaults on subprime mortgage loans. Treasuries gained as dealers prepared to bid on $13 billion of five-year notes in the monthly auction of the securities today.
(Bloomberg News)
