The yield on benchmark 10-year Treasuries rose one basis point to 2.60 percent. The rate fell as much as five basis points earlier on concern about the labor participation rate, which remained at the lowest since March 1978. The rate has climbed 12 basis points this week, the most since the five days ended March 7, and rose as high as 2.64 percent yesterday, the most since May 13.
The rate on similar maturity Italian bonds slid 18 basis points to 2.75 percent. Spain’s 10-year yields fell 19 basis points to 2.63 percent, the least since Bloomberg began compiling the data in 1993.
“Even as the Fed has started to tighten its monetary policy, the rest of world is still easing,” Jerry Braakman, chief investment officer of First American Trust in Santa Ana, California, said by phone. His firm oversees $1.1 billion. “You still have a lot of central bank liquidity being pumped into the system. There is more upside than downside in the market now.”
The MSCI All-World Index advanced 0.6 percent to 426.58, 0.3 percent below its all-time high of 427.63 from October 2007. The MSCI Emerging Markets Index added 0.9 percent, extending this week’s gain to 1.7 percent.
Russia’s Micex Index rose 1 percent, capping its best week in a month and recovering 20 percent from a low on March 14. Putin held his first talks with Ukraine’s newly elected president, Petro Poroshenko, as France used the backdrop of D- Day commemorations to ease tensions over the separatist unrest in eastern Ukraine.
Mexico’s central bank unexpectedly reduced its key interest rate to a record low as the economy struggles to recover. The equities benchmark jumped 1.4 percent.
Hong Kong’s Hang Seng Index slipped 0.2 percent, erasing a weekly gain and the Shanghai Composite Index retreated 0.5 percent. The yuan traded in Hong Kong jumped the most in a week after the central bank raised the currency’s daily fixing by the most in five months.
The International Monetary Fund said yesterday China’s policy makers still have tools to keep economic growth at a medium to high level. Trade data on June 8 may show exports climbed 6.7 percent from a year earlier in May, more than April’s 0.9 percent growth, according to the median estimate in a Bloomberg News survey.
Copper fell 1.3 percent to settle at $3.051 a pound in New York. An investigation of metals storage at China’s Qingdao port will make banks cautious about commodity financing, and any lending curbs might weigh on copper, according to Macquarie Group Ltd.
West Texas Intermediate crude climbed 0.2 percent to settle at $102.66 in New York after adding as much as 0.6 percent. Investors speculated the jobs data would signal higher demand. Gold futures pared earlier declines after falling the most in a week as stock gains diminished demand for the precious metal as an alternative investment.