Treasuries gain while S&P 500 fluctuates before Bernanke speech

Spanish Auction

The yield on Spain’s two-year note fell eight basis points to 3.67 percent as the government sold 3.6 billion euros of bills, surpassing the 3.5 billion-euro maximum target. Germany’s 10-year yield lost one basis point to 1.34 percent. The euro strengthened against 15 of 16 major peers, climbing 0.6 percent to $1.2570, near the highest level since the first week of July.

Fixed-income assets worldwide returned less than 0.1 percent in August, according to a Bank of America Corp. index. Global bonds reversed losses from earlier in August, when they were on course for the worst performance since November 2010, according to the Bank of America Merrill Lynch Global Broad Market Index.

ECB President Mario Draghi canceled his trip to the annual Jackson Hole symposium this week, citing other engagements.

Oil rose 0.9 percent to $96.33 a barrel, gaining for the first time in four days in New York as Isaac reduced offshore output in the Gulf of Mexico and on speculation that U.S. supplies fell to a five-month low. About 93 percent of oil production from the Gulf of Mexico has been shut as Hurricane Isaac approaches, according to the Bureau of Safety and Environmental Enforcement.

Gasoline Retreats

Gasoline futures for September delivery slipped from a nearly four-month high, dropping 0.9 percent to $3.1261 a gallon, on speculation that the impact from Isaac on Gulf Coast refining will be short lived. The contract rallied 2.5 percent yesterday.

The hurricane and a deadly blast at Venezuela’s Amuay refinery threatened to revive a debate about energy costs in the run-up to the presidential election in November.

The MSCI Emerging Markets Index of stocks in developing nations slipped 0.3 percent, declining for a third day. The Hang Seng China Enterprises Index of mainland companies declined 0.2 percent and Taiwan’s Taiex index slid 1.4 percent. Russia’s Micex Index added 0.2 percent and India’s Sensex fell 0.3 percent.

Bloomberg News

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