U.S. Treasuries Advance; Fed's Yellen Says Inflation Likely to Come Down

(Bloomberg) -- U.S. Treasuries rose as president of the Federal Reserve Bank of San Francisco said inflation is likely to slow, stoking expectations of lower interest rates.

Ten-year notes ended two days of losses after Janet Yellen said in a speech in New York yesterday that the U.S. economy has slowed to a ``crawl'' and that it's important not to raise interest rates ``too much.'' Gross domestic product grew at the slowest pace in more than a year in the first quarter, a government report is forecast to show today.


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