Treasuries fell for a seventh day before data that may show U.S. manufacturing expanded and fewer Americans filed for unemployment benefits. Emerging-market stocks and currencies slid. Ten-year Treasury yields added five basis points to 2.32 percent as of 7:07 a.m. in London. Germany’s similar rate increased four basis points to 1.99 percent. Standard & Poor’s 500 Index futures added 0.2 percent and Euro Stoxx 50 Index futures were little changed. The BSE India Sensitive Index sank 1.4 percent and the Hang Seng China Enterprises Index slid 0.8 percent. Oil advanced 0.3 percent to $105.77 a barrel. The world’s largest economy may expand 2.2 percent in 2012, accelerating from 1.7 percent last year, according to economists surveyed by Bloomberg News. Chinese stocks fell after foreign direct investment declined for a fourth straight month, while Indian equities fell after the central bank held off from lowering interest rates. “The U.S. economy is undoubtedly getting better,� said Kiyoshi Ishigane, a senior strategist at Mitsubishi UFJ Asset Management Co., which oversees about $71 billion in Tokyo. “The bond market is likely to remain weak.� South Korea’s bonds fell for a second day as the slump in Treasuries narrowed their interest-rate advantage. The yield on 2014 bonds climbed six basis points to 3.58 percent. Japan’s 10- year rate rose three basis points to 1.05 percent. The Philippine peso slumped 0.2 percent to 42.95 per dollar, South Korea’s won dropped 0.1 percent to 1,127.85 and the Polish zloty fell 0.5 percent to 3.1755. Yen Weakens The dollar traded near an 11-month high at 83.70 yen, and reached the highest level in four weeks against the euro, amid reduced bets the Federal Reserve will begin a third round of bond purchases, or quantitative easing, which could debase the currency. The pound fell as much as 0.2 percent before paring losses. Fitch Ratings said yesterday that Britain risks losing its top investment rating on weak economic growth. The yen declined against 15 of its 16 major counterparts. The Nikkei 225 (NKY) closed at the highest level since July on speculation a weaker yen will boost earnings of exporters. Toyota Motor Corp. and Honda Motor Co., Japan’s largest automakers, rose at least 2.8 percent. Sharp Corp. (6753) slid 5.3 percent after forecasting a record annual loss. The BSE India Sensitive Index, or Sensex, lost 1.4 percent after the Reserve Bank of India left rates unchanged for a third consecutive meeting as inflation accelerated. About the same number of stocks rose and fell in the MSCI Asia Pacific Index (MXAP), which gained 0.2 percent. U.S. Economy The Dow Jones Industrial Average (INDU) has risen for the past six days, its longest rally in more than a year. The Federal Reserve Bank of New York’s general economic index probably slid to 17.5 this month from 19.5 in February, according to a Bloomberg survey of economists. Readings greater than zero signal expansion in the so-called Empire State Index. A gauge of manufacturing in the Philadelphia region may have increased to 12 in March, the highest since April. Data later today may also show the number of Americans applying for jobless benefits fell by 5,000 to 357,000 in the week ended March 10, projections show. Unemployment in the U.S. will “decline gradually� and the inflation outlook is “subdued,� the Fed said in a statement on March 13. “Should U.S. economic data continue to come in firm, it will support the market’s view that the Fed doesn’t need� further monetary easing, said Junichi Ishikawa, an analyst in Tokyo at IG Markets Securities Ltd. Bond Risk Drops The cost of insuring bonds against non-payment dropped in Asia, according to credit-default swap traders. The Markit iTraxx Asia index of 40 investment-grade borrowers outside Japan declined two basis points, Royal Bank of Scotland Group Plc prices show. That puts it on track for its lowest close since Aug. 17, according to data provider CMA. Soybeans advanced for a third day to the highest level in six months on concern that forecasts of a lower harvest in Brazil would limit global supplies amid growing demand from China. The May-delivery contract increased as much as 0.9 percent to $13.6175 a bushel on the Chicago Board of Trade. To contact the reporters on this story: Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net; Monami Yui in Tokyo at myui1@bloomberg.net To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.

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