Treasuries rise first time in 3 days on bets inflation in check

Treasuries gained for the first time in three days amid speculation inflation will remain subdued as the Federal Reserve gets closer to raising interest rates.

Bonds rose as stocks declined on concern economic growth may falter. Treasuries briefly pared gains after the U.S. sale of $16 billion in 30-year debt drew lower-than-average demand. The bid-to-cover ratio, which gauges demand by comparing the amount bid with the amount offered, was 2.29, the lowest since May, versus an average of 2.46 at the past 10 sales.

The current 30-year bond yield fell three basis points to 3.08 percent at 1:45 p.m. in New York, according to Bloomberg Bond Trader prices. It touched 3.07 percent. Ten-year note yields decreased two basis points to 2.35 percent.

Economists surveyed by Bloomberg cut their estimate for the year-end 10-year yield for a 10th straight month.