The yield on the 10-year Treasury note rose to 3.85 percent, the highest since Jan. 8. The euro weakened against 12 of its 16 most-traded peers at 2:15 p.m. in New York and fell to a 10-month low against the dollar. The MSCI World Index of stocks in 23 developed nations slid 0.8 percent and the Standard & Poor’s 500 Index fell 0.5 percent, retreating from an 18-month high. The Reuters/Jefferies CRB Index of commodities dropped to a five-week low as oil slid 1.5 percent, copper lost 1.4 percent and lead tumbled 4 percent.
A record-tying $42 billion sale of five-year debt drew a higher-than-forecast yield and lowest demand since July from a group of investors that includes foreign central banks. France and Germany are nearing agreement on International Monetary Fund involvement in any aid package for Greece, according to a finance ministry official in Berlin, spurring concern the European Union won’t rescue the nation itself. The Portugal downgrade heightened concern that more European nations will struggle to fund swelling deficits.