Treasuries Surge as Stocks Fall After U.S. Jobs Report

Treasuries rallied, driving 10-year yields below 1.50 percent for the first time, while the Dow Jones Industrial Average erased its 2012 gain after U.S. employers created the fewest jobs in a year and reports signaled manufacturing growth was slowing. Commodities slumped.

Yields on 10-year Treasuries dropped 10 basis points to 1.46 percent and slid as low as 1.4387 percent. The Standard & Poor’s 500 Index sank 2.5 percent, its biggest drop since November, to a four-month low of 1,278.04. The Stoxx Europe 600 Index slumped 1.9 percent. The S&P GSCI gauge of 24 commodities slipped to the lowest level since October as oil plunged 3.8 percent to an eight-month low of $83.23 a barrel. Germany’s two-year note yield turned negative during the day for the first time ever. Gold and silver rallied.