Treasuries held a four-day gain after an industry report showed China’s manufacturing may contract at a faster pace this month, adding to signs global growth is slowing and boosting demand for the safest assets. A purchasing managers’ index for China dropped to 47.8 for August from July’s final reading of 49.3, according to HSBC Holdings Plc and Markit Economics. Federal Reserve policy makers signaled readiness to boost record stimulus unless they are convinced the economy is poised to rebound, minutes of their most recent meeting released yesterday showed. The benchmark 10-year Treasury yield fell one basis point, or 0.01 percentage point, to 1.68 percent at 9:56 a.m. in London, according to Bloomberg Bond Trader prices. The 1.625 percent note due in August 2022 gained 1/8, or $1.25 per $1,000 face amount, to 99 1/2. The yield dropped 11 basis points yesterday after the release of the Fed minutes, the biggest decline since May 30. The yield climbed as high as 1.86 percent on Aug. 21. To contact the reporter on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net

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