Treasury prices declined Tuesday after Federal Reserve Chairman Ben Bernanke repeated that the central bank could buy longer-term Treasurys to keep loan rates low. Two-year note yields rose 4 basis points to 0.79%. The timing and strength of the global economic recovery "are highly uncertain," he said in London. The Fed has begun a plan to buy billions of dollars in mortgage-backed securities and debt sold by housing agencies including Fannie Mae ) and Freddie Mac to lower mortgage rates and spur growth in the housing market. He also said it may expand its program to buy asset-backed securities, which pool things like car loans and credit card debt. More aid to the banking system would be needed to foster an economic recovery, Bernanke said.

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