Treasuries rose, with yields falling to a record low, as speculation Germany is preparing for a Greek default boosted demand for the safest assets. Ten-year notes advanced for a third day as European and Asia stocks slumped on signs the debt crisis in the euro-zone is worsening. Bonds also gained before report that economists said will show U.S. retail sales and consumer-price gains slowed in August. The U.S. government is scheduled to sell $32 billion of three-year notes today, $21 billon of 10-year debt tomorrow and $13 billion of 30-year bonds on Sept. 14. “I’m a little bullish” on Treasuries even following the plunge in yields, said Shun Totani, a senior fund investor at Asahi Life Asset Management Co. in Tokyo “Economic conditions are getting worse in the U.S. and Europe.” Asahi Life Asset oversees the equivalent of $8.9 billion in its advisory and investment management businesses, according to its website. The benchmark 10-year yield dropped three basis points to 1.89 percent at 8:27 a.m. in London, according to Bloomberg Bond Trader prices. The 2.125 percent note due August 2021 rose 1/4, or $2.50 per $1000 face amount, to 102 3/32. Yields earlier fell to a record low 1.8856 percent. 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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