Business

INVESTORS RACING BACK TO BONDS

Bond investors across the country are snapping up 10-year Treasury notes as expectations for a US economic recovery this year disappear.

Firms from New York-based BlackRock Inc. to Franklin Templeton Investments in San Mateo, Calif., are turning more bullish a month after yields on Treasuries rose to the highest since October. Declining consumer confidence, falling stocks and unemployment climbing toward 10 percent has overcome concern that record auctions of government debt will overwhelm demand. Barclays Plc estimates $1.1 trillion more in sales by the end of the year, on top of the first half’s $963 billion.

The gap between yields on 10-year Treasury notes and two-year securities has narrowed to 2.41 percentage points from a record 2.81 on June 5.