MW: Treasurys erase loss as U.S. stocks extend decline
By Deborah Levine
NEW YORK (MarketWatch) -- Treasury prices erased an earlier loss in mid-morning trading on Wednesday after U.S. stocks fell, with the S&P 500 Index (SPX 1,112, -9.02, -0.80%) briefly losing 1%. Bond and the dollar had been lower earlier, paring a small share of the big gains notched late Tuesday as word of Germany's ban on short selling raised uncertainty and volatility, which tend to increase the relative of appeal of U.S. assets. Yields on 10-year notes (UST10Y 3.35, 0.00, 0.00%) , which move inversely to prices, fell 1 basis point to 3.36%. The euro (CUR_EURUSD 1.2345, +0.0162, +1.3297%) traded at $1.2363, from $1.2204 in late North American trading Tuesday. It fell to a fresh four-year low of $1.2143 earlier. The dollar index [s$dxy], which tracks the U.S. unit against a trade-weighted basket of six major currencies, fell to 86.442 from 87.160 late Tuesday.
