Treasuries fell, sending 10-year yield to a one-month high, while U.S. and Asian stocks rose as an increase in American wholesale inventories and growth in Japan’s economy bolstered optimism in the global recovery.
The 10-year yield climbed 3 basis points to 2.79 percent at 4 p.m. in New York. Two-year Treasury yields, which hit record lows in August on concern the economy may relapse into a recession, rose for a third day. The Standard & Poor’s 500 Index climbed 0.5 percent to 1,109.55, its highest close in a month. Oil rallied above $76 a barrel as a leaky pipeline slowed supplies to the U.S. Midwest. Corn surged to a 23-month high.
Today’s reports that U.S. wholesale inventories jumped by the most in two years and Japan’s growth slowed less than estimated helped bolster optimism in the global recovery after a decrease in American jobless claims yesterday. Banking shares weighed on European equity indexes after three people with knowledge of the talks said Deutsche Bank AG may seek to raise 9 billion euros ($11.5 billion) in a stock sale.
“What took us to record lows in yields were not what I’d refer to as positive for equities,” said Mark Freeman, a money manager at Westwood Management Corp., which oversees $10 billion. “To the extent some of that is abating, I’d view that as a positive for the broader equity market. It’s a lessening of fear in the markets.” (more)
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