Treasury Two-Year Notes Rise Most Since March as Gauge of Inflation Slows

(Bloomberg) -- Two-year Treasury notes rose the
most since March after a government report showed a gauge of
inflation watched by the Federal Reserve slowed in May and
consumer spending increased less than economists forecast.

Bonds extended their gains after police discovered and
dismantled a car bomb in London, prompting investors to seek the
safety of government debt. U.S. government securities rebounded
from a drop yesterday after the central bank said in a statement
that inflation remains its main concern.


Read more at Bloomberg Bonds News