Treasuries Drop as Plosser Calls for Taper; S&P 500 Rises

Treasuries fell, erasing early gains, as Federal Reserve Bank of Philadelphia President Charles Plosser said the central bank should begin tapering bond purchases in September. The Standard & Poor’s 500 Index rose to a record for a second day and the dollar strengthened.

Ten-year U.S. yields gained one basis point to 2.58 percent at 4 p.m. in New York after losing as much as five points earlier. The S&P 500 added 0.3 percent to 1,680.19 and extended its best weekly gain in six months, while the Dow Jones Industrial Average’s gain was limited as Boeing Co. slid after a fire on a 787 in London. The Bloomberg Dollar Index added 0.3 percent after a two-day slide. Portugal’s bonds and stocks slid on concern political turmoil threatens the nation’s bailout.