Global stocks fall with copper while Treasuries, oil rebound

Treasury Auction

Today’s advance in Treasuries left the 10-year securities little changed from the end of last week. The U.S. plans to sell $24 billion of notes today.

The difference in yield between longer-maturity bonds and shorter-term debt is increasing as central banks pledge to keep down interest rates for a sustained period of time. The extra yield to maturity investors get for holding bonds maturing in 10 years or more, compared with those due in three-to-five years, increased to 1.78 percentage points yesterday, the widest spread since May 2010, according to Bank of America Merrill Lynch Global Broad Market Plus Indexes.

U.K. Jobs

The pound gained versus 15 of 16 major counterparts, advancing 0.4% against the euro. The jobless rate, which fell to 7.6% in the third quarter according to data released today, is more likely than not to reach 7% in the third quarter of 2015, based on the path of interest rates projected by investors, according to the BOE.

The yen strengthened 0.2% to 99.43 per dollar and advanced 0.1% per euro. The 17-nation shared currency added 0.1% to $1.3449. Sweden’s krona weakened against all 16 major peers after Finance Minister Anders Borg said policy makers need to monitor a drop in consumer prices brought on by a strong currency that he says is a “risk” to the economy.

Copper retreated 1.9% to $6,986 a metric ton on the London Metal Exchange, and touched the lowest price since August. Refined-copper production in October in China rose 23% to 637,000 tons from a year earlier, according to data from the statistics bureau. That was 2.6% higher than the previous record in September.

Gold for immediate delivery climbed 0.6% to $1,275.87 an ounce in London trading, gaining for the first time in five sessions.

Cold Weather

Natural gas erased earlier gains and fell 0.3%. Natural gas had rallied for six straight days on forecasts for colder-than-normal weather in the U.S. that may boost demand for the heating fuel. A seventh day of gains would mark the longest streak since January 2011. Futures for December delivery gained as much as 1.2% to $3.662 per million British thermal units in electronic trading on the New York Mercantile Exchange. Crude oil gained 0.7% in New York to $93.70 a barrel, rebounding from a five-month low.

Houston-based Schlumberger Ltd., the world’s largest oilfield-services provider, is selling bonds in euros as the cost of borrowing in the currency relative to U.S. dollars approaches the cheapest in almost five years.

The cost of insuring corporate bonds in Europe rose, with the Markit iTraxx Europe index of credit-default swaps on 125 companies with investment-grade ratings increasing 2.6 basis point to 86.7 basis points.

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