The yield on the benchmark 10-year note fell 10 basis points, or 0.1 percentage point, last week to 3.29%, and is down from the this year's high of 3.77% on Feb. 9, according to Bloomberg Bond Trader data. The price of the 3.625% note maturing in February 2021 rose 29/32, or $9.06 per $1,000 face value, to 102 25/32 last week.

Treasuries today halted last week's rally after President Barack Obama said Al Qaeda founder Osama bin Laden had been killed in a U.S. military operation, reducing demand for the safest assets. Ten-year bond yields rose one basis point to 3.30% at 10:07 a.m. in New York.

Credit Suisse, one of the 20 primary dealers of U.S. government securities obligated to bid at Treasury auctions, sees yields ranging from 3.25% to 3.75% through year-end. The weighted average of 76 forecasts in a Bloomberg survey that gives a greater emphasis to recent estimates is for the yield to end the year at 3.93%.

Fed Outlook

"Our base case for the looming end of QE is not a catastrophic sell-off," strategists at Credit Suisse led by Carl Lantz in New York wrote in an April 29 report.

Bonds rallied last week as Bernanke signaled no plans to raise rates and the Commerce Department said April 28 that gross domestic product rose at a 1.8% annual rate in the first quarter, compared with 3.1% at the end of 2010. The median estimate of economists in a Bloomberg survey was for 2% growth.

GDP will likely expand 2.9% this year, based on a survey of 74 economists by Bloomberg, down from estimates of 3.2% in February. Forecasts dropped as the average price of a gallon of gasoline reached $3.89 on April 27, the highest in more than two years. Average hourly earnings adjusted for inflation shrank 1% in the 12 months ended in March.

Residential real-estate prices measured by the S&P/Case- Shiller index of properties in 20 cities fell 3.3% in February from a year earlier, the biggest drop since November 2009.

Bank Revenue

Banks are facing the biggest percentage drop in quarterly revenue in three years, led by lower lending and reduced fees, according to data compiled by Bloomberg. Revenue at Bank of America, JPMorgan, Citigroup Inc., Wells Fargo & Co., Goldman Sachs Group Inc. and Morgan Stanley fell 13.3% in the first quarter from a year earlier.