The yen and the dollar climbed while commodity and emerging-market currencies weakened with U.S. Secretary of State John Kerry preparing to visit Kiev as Russia seized control of Ukraine’s Crimea region, intensifying one of the most serious standoffs since the Cold War ended.
Ukrainian bonds rebounded from a record low and equities erased declines as European Union sanctions added to pressure on President Viktor Yanukovych to find an end to violence that has killed at least 64 people.
Treasuries fell, pushing 10-year note yields higher for a third day, as demand for the safety of U.S. government securities ebbed before a report forecast to show payrolls growth rebounded from the slowest in almost two years.
The dollar strengthened a fifth day versus the euro as U.S. consumer spending rose the most in three years a day after the Federal Reserve scaled back bond purchases that weaken the greenback and support global asset prices.
U.S. stocks fell, pushing the Standard & Poor’s 500 Index to a two-month low, while Treasuries and the yen gained as the Federal Reserve said it would make further cuts to economic stimulus and as emerging-market currencies weakened. Gold and natural gas climbed.