U.S. Stocks Drop, Treasuries Gain as Bernanke Signals No QE3

U.S. stocks fell for a fifth day, the longest drop for the Standard & Poor’s 500 Index in 11 months, and Treasuries erased losses as Federal Reserve Chairman Ben S. Bernanke gave no sign he is planning new stimulus efforts to bolster the weakening economy.

The Standard & Poor’s 500 Index slipped 0.1 percent to 1,284.94 at 4 p.m. in New York, its lowest closing level since March 18. The 10-year U.S. Treasury yield decreased less than one basis point to 2.99 percent after rising as much as six basis points earlier, and two-year yields fell to their 2011 low. The euro climbed 0.8 percent to $1.4688, the strongest since May 5, as the European Central Bank signaled it may back Greek debt rollovers. Oil climbed on speculation any increase in OPEC production quotas will reduce spare capacity.