U.S. Treasury yields hit lowest rate since 2016 as stocks rise

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Bonds extended gains globally as investors weighed the prospect of more dovish appointees to two of the world’s major central banks.

Ten-year Treasury yields dipped to the lowest rate since November 2016, German rates turned more negative and Italy’s slipped below 1.7%. The S&P 500 looked for a fifth straight gain and the Dow Jones industrial average flirted with a closing record. Volumes are likely to be low ahead of a 1 p.m. EDT close. Tesla Inc. jumped after the electric car maker’s. The Stoxx Europe 600 Index extended its advance to the highest in almost 13 months.

Elsewhere, oil rebounded after tumbling Tuesday. Shares in Japan, China and South Korea led losses in Asia as equities in Australia edged higher. The yen strengthened after the Bank of Japan made small tweaks to its bond-buying program.U.S. equity markets close at 1 p.m. EDT Wednesday and remain shut Thursday for the Fourth of July holiday.

 

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