Treasuries rallied the most in more than a year after Federal Reserve Chairman Ben S. Bernanke soothed investor concern the central bank is close to ending its bond-buying program by saying stimulus will remain accommodative.
Federal Reserve Bank of St. Louis President James Bullard, who dissented for the first time last month over the issue of defending the Fed’s price goal, said the central bank shouldn’t trim its monthly bond purchases until inflation accelerates toward its 2 percent target.
Federal Reserve Bank of Philadelphia President Charles Plosser, who has opposed the Fed’s current round of asset purchases, said the central bank should begin tapering its $85 billion in monthly bond buying in September and end the unorthodox stimulus by year-end.
U.S. stocks rose for a seventh day, extending a record for the Standard & Poor’s 500 Index, as better-than-estimated bank earnings overshadowed a reduced profit forecast from United Parcel Service Inc.
Treasuries fell, erasing early gains, as Federal Reserve Bank of Philadelphia President Charles Plosser said the central bank should begin tapering bond purchases in September. The Standard & Poor’s 500 Index rose to a record for a second day and the dollar strengthened.
Canadian stocks fell, following the biggest rally in 11 months, as raw-materials companies declined amid signs China may tolerate slower growth and a U.S. Federal Reserve official urged slower stimulus.
U.S. stocks retreated, halting a six-day rally, as Federal Reserve Bank of Philadelphia President Charles Plosser called for tapering bond purchases and Boeing Co. sank after a fire on a 787 Dreamliner.