Treasuries advanced, pushing two- year yields to the lowest in 22 months, as a slide in global stocks fed demand for the relative safety of government debt.
Two-year notes rose a fourth day following the biggest gain in three-month bills since 1989 as corporate bond risk increased. Coventree Inc., a Canadian financial-services company, said its units didn't sell any asset-backed commercial paper yesterday. Sydney-based Rams Home Loans Group Ltd. said it was unable to refinance the equivalent of $5 billion of U.S. loans due to tightening credit.
``The flight to safety will definitely continue for some time and the central bank may have to act,'' said Rachana Mehta, global bonds and currency strategist at DBS Asset Management Ltd. in Singapore. ``We have added more cash and bonds and we're neutral on emerging markets.''
