Treasury Bill Rates Jump, U.S. Stocks Fall as Talks Stall
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Treasury bill rates surged to the highest level since the securities were sold in April and U.S. stocks snapped a four-day rally as lawmakers failed to reach an agreement to extend the government’s borrowing limit less than two days before the deadline. Oil fell and gold erased losses.
The Standard & Poor’s 500 Index dropped 0.7 percent to 1,698.06 at 4 p.m. in New York after jumping 3.3 percent in the previous four sessions. Rates on Treasury bills due Oct. 24 jumped as the U.S. attracted the least demand at weekly bill auctions since 2009. The Stoxx Europe 600 Index advanced 0.8 percent, rising for a fourth day in the longest winning streak in two months. Oil slid 1.2 percent while gold gained, rebounding from a three-month low.