Treasuries rose, pushing 10-year yields to a record low, as concern that the debt crisis in the euro area is deepening underpinned demand for the safest assets The Federal Reserve needs to do more to support the U.S. economy and will probably announce plans to buy long-term bonds when policy makers meet Sept. 20, Goldman Sachs Group Inc. said. Treasuries briefly erased gains after the Swiss National Bank announced it would set a minimum exchange rate for the franc against the euro. Growth in U.S. service industries slowed in August to the least in more than a year, economists said before a report today from the Institute for Supply Management. “Bond yields in developed markets, including the U.S., are at stupidly low levels, and they are likely to stay low for a long time unless sentiment turns more positive,” said Luca Jellinek, head of European interest-rate strategy at Credit Agricole Corporate & Investment Bank in London. “The reality is that people are pessimistic about the global outlook as economic data are looking increasingly painful.” Benchmark 10-year rates dropped two basis points to 1.97 percent at 10 a.m. in London, according to Bloomberg Bond Trader prices. The 2.125 percent note maturing in August 2021 rose 6/32, or $1.88 per $1,000 face amount, to 101 12/32. The yield earlier slid to 1.9066 percent, the lowest on record based on Fed data that start in 1953. The MSCI Asia Pacific Index of shares dropped 1.5 percent and futures on the Standard & Poor’s 500 Index declined 1.4 percent. The Stoxx Europe 600 Index was little changed today after tumbling 4.1 percent yesterday To contact the reporter on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net; Wes Goodman in Singapore at wgoodman@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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