European and Asian shares slid as a surge in U.S. bond yields sparked concern that higher borrowing costs will snuff out an economic recovery. Deutsche Bank AG and Barclays Plc led bank shares lower after 10-year U.S. Treasury yields jumped the most since January and the so-called yield curve climbed to the steepest on record. BHP Billiton Ltd. and Anglo American Plc fell as copper declined for the first time in a week. Infineon Technologies AG slid 6.4 percent on speculation the company asked the German government for loan guarantees. The MSCI World Index dropped 1 percent as of 8:18 a.m. in London, a second day of declines. The gauge of 23 developed markets has rebounded 38 percent since March 9 as the U.S. government and Federal Reserve pledged $12.8 trillion to end the first global recession since World War II. Yields on 10-year Treasury notes have risen more than 100 basis points since Fed officials said in March they would buy up to $300 billion of U.S. debt over six months in an effort to reduce rates. Fannie Mae and Freddie Mac mortgage-bond yields rose for a fourth day yesterday, after exceeding where they stood before the Fed announced it would expand purchases to drive down loan rates. “The sharp sell off in treasuries last night and the sharp rise in bond yields is going to be worrying a few investors this morning,” said Paul Chesterton, a London-based trader at CMC Markets. “The market has got a bit tired at these levels so it’s understandable that we are looking at losses this morning.” Banks Fall Europe’s Dow Jones Stoxx 600 Index slid 1.3 percent and the MSCI Asia Pacific Index lost 0.8 percent. Standard & Poor’s 500 Index futures were little changed after the gauge sank 1.9 percent yesterday. Deutsche Bank, Germany’s biggest lender, fell 2.1 percent to 47.36 euros. Barclays, the U.K.’s third-largest bank, slipped 2.1 percent to 284 pence. BHP, the world’s biggest mining company, lost 1.9 percent to 1,407 pence as copper retreated as much as 2.4 percent in London. Anglo American, the fourth-largest diversified mining company, slid 1.6 percent to 1,646 pence. Infineon dropped 6.4 percent to 2.19 euros after the Financial Times Deutschland said Europe’s second-largest maker of semiconductors asked the government for 500 million euros ($691 million) of loan guarantees. The company, whose financial situation has improved slightly, is also in negotiations with its banks about extending and increasing some of its loans, the newspaper reported, citing unidentified people close to the situation. Man Group Plc retreated 10 percent to 225 pence. The largest publicly traded hedge-fund manager said annual pretax profit dropped 43 percent after assets under management declined by a third. Wolseley Plc slumped 7.7 percent to 1,134 pence after the world’s biggest supplier of heating and plumbing gear said slumping demand caused pretax profit to fall 80 percent.

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