Treasuries Fall, Stocks Erase Gain, Dollar Rises on Debt Concern

Treasuries slid, sending 30-year yields to the highest level since May, amid increased criticism of the Federal Reserve’s plan to stimulate growth and concern that a swelling U.S. deficit will lead to higher borrowing costs. U.S. stocks erased gains and the dollar rallied.

The 30-year Treasury yield climbed 13 basis points to 4.42 percent. The Standard & Poor’s 500 Index slipped 0.1 percent to 1,197.75, wiping out a gain of as much as 0.7 percent. The Dollar Index jumped to its highest level since Sept. 30. Irish 10-year bonds rose, narrowing the yield premium to German bunds to 540 basis points, amid speculation the European Union will provide a rescue. After the close of U.S. markets, S&P 500 futures lost 0.1 percent at 7 p.m. in New York and stocks rose in early trading in Japan and Australia.