Treasuries fell, with benchmark 10- year yields rising for the first time in four weeks, as an accord aimed at ending the crisis in Ukraine and signs of a strengthening U.S. economy crimped refuge demand.
The Treasury’s $18 billion sale of five-year inflation-indexed notes may draw a yield of negative 0.162 percent, according to the average forecast in a Bloomberg News survey of five of the Federal Reserve’s 22 primary dealers.
It seems like for every doom-and- gloomer saying the U.S. stock market is headed for a 2000-style bubble burst, there’s an optimist behind them saying, “That’s nonsense -- and can I interest you in a flier on an IPO for an unprofitable Internet company?”
Gold tumbled 2 percent, the most in 16 weeks, on speculation that a gain in U.S. consumer prices will give the Federal Reserve more leeway to reduce monetary stimulus. Palladium fell for the first time in six sessions.
Prime Minister Shinzo Abe’s bid to vault Japan out of 15 years of deflation risks losing public support by spurring too much inflation too quickly as companies add extra price increases to this month’s sales-tax bump.