The difference between yields on two- and 10-year Treasuries widened to the most since 2011 as employment gains reinforced expectations the Federal Reserve is close to slowing bond purchases used to stimulate growth.
Treasury 10-year note yields fell from the highest in almost three months as investors weighed prospects for the Federal Reserve’s bond purchases after data showed the economy added more jobs than forecast last month.
U.S. stocks rose, halting a five-day slide for the Standard & Poor’s 500 Index, as investors weighed better-than-forecast jobs growth to gauge the strength of the economy and timing of Federal Reserve stimulus cuts.
The jobless rate dropped to a five- year low of 7 percent in November as American employers added more workers than forecast, boosting speculation the Federal Reserve may start scaling back stimulus as soon as this month.
Bill Gross, manager of the world’s biggest bond fund, said the pace of payroll growth in November signals there a 50 percent chance the Federal Reserve will begin tapering its monthly bond purchases this month.
Hostess Brands Inc. said United States Bakery Inc. offered to buy certain bread brands for $28.9 million and that McKee Foods Corp., maker of Little Debbie snacks, agreed to pay $27.5 million for its Drake’s brand.
China Overseas Land & Investment Ltd., the largest-listed mainland developer in Hong Kong, is marketing dollar-denominated bonds as the government balances the need to maintain economic growth amid soaring house prices.
Oct. 31 (Bloomberg) -- Bloomberg's Mike McKee looks at the possible costs of damage from Hurricane Sandy and how it will potentially be paid for. He speaks on Bloomberg Television's "Bloomberg Surveillance."