(Bloomberg) -- The sudden slowdown in U.S. inflation has left Treasuries at the cheapest levels in almost two years, aiding the Federal Reserve’s efforts to tamp down long-term borrowing costs while the economy improves.
Yields on 10-year notes, the benchmark measure for everything from home loans to corporate bonds, reached an 11- month high of 2.08 percent on March 8. The securities pay interest 0.88 percentage point higher than the personal consumption expenditures index deflator, the Fed’s favored inflation gauge, the widest gap since May 2011.
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