By Daniel Tilles and Rita Nazareth Dec. 8 (Bloomberg) -- Bonds fell around the world, while stocks and commodities advanced and the dollar strengthened, amid speculation President Barack Obama’s tax-cut accord will help spur economic growth. Gains in equities were limited as concern China may raise interest rates tempered optimism. Treasury 10-year yields gained nine basis points to 3.22 percent at 9:45 a.m. in New York after jumping 21 points yesterday, the most in 18 months. The German 10-year bund yield climbed three basis points and earlier reached 3 percent for the first time since May. The Stoxx Europe 600 Index added 0.9 percent and the Standard & Poor’s 500 Index climbed 0.4 percent. The S&P GSCI index of commodities erased a 1.1 percent drop to gain 0.3 percent. Global bond markets extended a three-month decline after Obama agreed to extend Bush-era tax cuts. The compromise may add as much as half a percentage point to economic growth next year, according to JPMorgan Chase & Co. China said it will release consumer price-index data on Dec. 11, two days earlier than planned, fanning speculation interest rates may be increased. “The tax-cut extension is a positive,” said Peter Jankovskis, who helps manage $2.2 billion as co-chief investment officer at Oakbrook Investments LLC in Lisle, Illinois. “Investors will be focused on Obama’s battle for his own party to push through that compromise,” he said. “There’s concern about China raising rates further. However, the fact that has been advertised for months got investors used to that idea.” Irish Spread Narrows Japanese five-year yields jumped as much as 10 basis points to 0.515 percent in Tokyo, the biggest increase since June 11, 2008, according to data compiled by Bloomberg. The extra yield investors demand to hold Irish 10-year bonds instead of benchmark German bunds narrowed seven basis points to 501 basis points. Irish Finance Minister Brian Lenihan won parliamentary backing in the first votes on his 6 billion- euro ($8 billion) austerity budget. The cost of protecting against a European junk-bond default rose from a one-month low, with the Markit iTraxx Crossover Index of credit-default swaps on 50 companies climbing 1.5 basis points to 453.7, according to Markit Group Ltd. The Dollar Index, which tracks the currencies of six U.S. trading partners, rose to 80.233, climbing for a third day. The euro weakened 0.4 percent to $1.3214, while the New Zealand dollar declined against all but one of its most-traded counterparts amid speculation the Reserve Bank of New Zealand will keep its main rate at 3 percent tomorrow, according to all 14 economists surveyed by Bloomberg. European Stocks Rise Financial and technology stocks led gains in nine of 10 industry groups in the S&P 500. Netflix Inc. slid 3.3 percent after Jefferies Group Inc. cut its recommendation on the shares and the company named a new chief financial officer. 3M Co., the maker of Scotch tape, dropped after Goldman Sachs Group Inc. cut its recommendation on the shares. The Stoxx 600 advanced for a third day toward its highest close since September 2008. Smith & Nephew Plc, Europe’s largest maker of shoulder and knee implants, rose 6 percent after Goldman Sachs recommended buying the stock. Porsche SE led automakers lower, dropping 3.4 percent to snap a six-day rally. The MSCI Asia Pacific Index fell 0.8 percent, the most in almost two weeks. Cnooc Ltd., China’s biggest offshore oil producer, declined 2.4 percent in Hong Kong. Sumco Corp., a Japanese maker of silicon wafers for semiconductors, slumped 9.6 percent in Tokyo after forecasting a wider full-year net loss. Korean Tensions The MSCI Emerging Markets Index fell 1.1 percent, on course for its biggest decline since Nov. 26. The measure climbed 5.1 percent in the previous five days. The Shanghai Composite Index dropped 1 percent. China’s statistics bureau is bringing forward the release of economic data including retail sales figures by two days as investors speculated the central bank is preparing to raise borrowing costs. South Korea’s Kospi Index retreated 0.4 percent after North Korea fired artillery shells into its own waters near the disputed western border with South Korea today, according to a government official in Seoul. The won dropped against 16 major counterparts, with the Mexican peso and British pound strengthening more than 1.6 percent. --With assistance from Michael Shanahan, David Merritt, Claudia Carpenter, Abigail Moses, Jason Webb, Matthew Brown and Paul Armstrong in London. Editor: Michael P. Regan To contact the reporter on this story: Daniel Tilles in London at dtilles@bloomberg.net To contact the editor responsible for this story: Paul Sillitoe in London at psillitoe@bloomberg.net

Source