U.S. 10-year Treasury yields declined 10 basis points to 2.64% after touching 2.75% earlier today, the highest since August 2011. Volatility in Treasuries as measured by the Bank of America Merrill Lynch MOVE Index rose to 117.89 on July 5, the highest since December 2010. The index has averaged 64.26 this year.
European stocks rebounded, with trading 21% less than the 30-day average. Siemens AG jumped 4.1% as Osram Licht AG traded for the first time following a spinoff from the German engineering company.
Lloyds Banking Group Plc added 3.8% after a person with knowledge of the matter said former Standard Chartered Plc Chairman Mervyn Davies is assembling a group of investors to bid for part of the U.K. government’s stake in the mortgage lender. The Sunday Times reported that Singapore’s state-owned investment company made a preliminary approach about buying a 10% stake in Lloyds. Temasek said it does not comment on speculation.
Portugal’s PSI 20 Index climbed 2.3%. The country’s prime minister named Paulo Portas, the leader of the junior party in the governing coalition, as vice premier. The appointment helps cement a deal to hold the coalition together.
Egypt’s main stocks gauge tumbled 3.6%. Supporters of deposed President Mohamed Mursi clashed with the military today outside a main security installation, in violence that authorities said killed at least 40 people.
The MSCI Emerging Markets Index fell 1.1%, extending this year’s decline to 14%, compared with a 8.9% advance for the MSCI World gauge of developed nation shares. Benchmark indexes in Shanghai, Indonesia, Thailand and the Philippines lost more than 2.4% today.
India’s rupee, the Philippine peso, Malaysian ringgit and Thai baht declined at least 0.4%. Turkey’s lira rallied 0.9% from a record low as the central bank offered $500 million at currency auctions and said it would start “strong” monetary tightening.
Australia’s 10-year bond yield climbed eight basis points to 3.90%.
Greek 10-year bonds rose for a second day, pushing the 10-year yield 39 basis points lower to 10.93%. Euro-area finance ministers approved Greece to receive 2.5 billion euros this month and the remainder of the 3 billion euro aid in October, said two people familiar with the matter, who asked not to be identified because the decision hasn’t been announced.
Natural gas rallied 3.4% to $3.741 per million British thermal units, leading gains in commodities, on speculation that hotter weather may spur demand for the power- plant fuel. Forecasts showed above-normal temperatures from the Northeast into Central and Western states through July 22, said MDA Weather Services in Gaithersburg, Maryland. Gas prices are down 16% from a 21-month high of $4.444 on May 1 as stockpile gains topped five-year averages for five straight weeks amid mild weather.
Gold rose 1.1% to $1,236.97 an ounce and West Texas Intermediate oil was little changed around $103 a barrel. Oil trading in New York was about 25% above the average for the past 100 days, according to data compiled by Bloomberg.