Treasuries drop after auction as stocks, oil erase early gains

European Yields

The yield on Italy’s 10-year note fell 11 basis points to 4.40%. The extra yield investors demand to own Italy’s 10-year debt rather than German bunds narrowed 15 basis points to a one-week low of 273 basis points. Spanish bonds rose, pushing the 10-year yield down 12 basis points to 5.20%.

More than three shares gained for every one that fell in the Stoxx 600. Heineken NV climbed 5.7% in Amsterdam as the world’s third-biggest brewer reported full-year earnings that beat estimates. PSA Peugeot Citroen, Europe’s second-largest carmaker, advanced 7.3% after posting a narrower-than-projected loss.

Societe Generale SA, France’s second-biggest bank, fell 3.6% after reporting a quarterly loss. Storebrand ASA sank 8.4%  in Oslo after the insurer’s profit missed estimates.

The MSCI Emerging Markets Index jumped the most in two weeks, adding 0.5%. Samsung Electronics Co. and Hyundai Motor Co. led South Korea’s Kospi Index 1.6% higher as a weaker currency boosted exporters’ competitiveness. Russia’s Micex Index closed up 1.7%, snapping a five-day decline, the longest slump since October.

Natural gas surged 2.3% to $3.305 per million British thermal units, leading gains in commodities, amid forecasts of a Midwest chill that may boost demand for the heating fuel. Aluminum rallied 1%, while feed cattle, coffee and cotton lost at least 1% for the biggest declines in the S&P GSCI Index, which was little changed.

Bloomberg News

 

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