Treasuries fell for a fourth day, while oil and the dollar rose after stronger-than-forecast jobs growth fueled optimism in the American economy. U.S. stocks were little changed as Russia said it may cut Ukraine’s gas supplies.
Treasuries were set for the steepest weekly decline this year amid speculation a U.S. jobs report today will strengthen the case for the Federal Reserve to push ahead with tapering its monetary stimulus program.
The pound weakened the most in more than a month against the euro as European Central Bank President Mario Draghi raised forecasts for euro-area growth this year, boosting the relative allure of the shared currency.
Euro-area government bonds fell as European Central Bank President Mario Draghi damped speculation policy makers will cut interest rates and refrained from introducing new stimulus to boost the recovery.
Spain’s bond yields dropped to an eight-year low and Italian and Greek government securities rallied as evidence mounted the euro-area economy is improving before the European Central Bank meets tomorrow.