U.S. stocks fell, giving benchmark indexes their biggest losses in a month, as a selloff in small- cap and Internet stocks spread to the broader market. Yields on 30-year Treasuries dropped to the lowest since June on stimulus bets while the yen gained.
Treasury 30-year bonds rose, with yields falling to the lowest level since June, as speculation of increased monetary accommodation in Europe added to pressure on traders betting on higher U.S. interest rates.
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.
Treasury 10-year note yields approached a record low as concern Europe’s financial woes are weighing on U.S. growth led to higher-than-average demand at the government’s auction of $32 billion in three-year notes.
Treasuries rose as concern the U.S. economic recovery is faltering drove record demand from a group of investors that includes pension funds and insurance companies at the government’s auction of $35 billion of two-year notes.
Treasury 30-year bond yields fell to the lowest since January 2009 after a government report showed no jobs were added in August, reinforcing concern the U.S. economy has slowed, which may prompt additional stimulus by the Federal Reserve.
Treasury 10-year note yields were in the tightest range in more than a month amid speculation the Federal Reserve may indicate when it will begin slowing bond purchases at the end of its two-day policy meeting tomorrow.