Treasuries slid, pushing 10-year yields to the highest level since September, as industry data showed job growth accelerated more than forecast, adding to bets the Federal Reserve may reduce bond purchases this month.
Stocks rose, sending the Dow Jones Industrial Average to a record, and Treasuries climbed as Federal Reserve officials said weakness in the U.S. economy warranted continued stimulus. Oil led commodities up from a four-month low while the yen and dollar weakened.
The euro rose against the dollar and the yen as a gauge showed the region’s services output increased more than initially estimated, boosting speculation the European Central Bank will refrain from cutting interest rates tomorrow.
A gauge of Treasury market volatility fell to a five-month low on speculation the Federal Reserve will maintain its debt purchases at $85 billion a month following a two-day policy meeting that ends Oct. 30.
Treasury 10-year note yields are close to a one-week high as the U.S. gets ready to sell $96 billion of two-, five- and seven-year securities over the next three days and Federal Reserve policy makers prepare to meet.