* C.bank policy effectiveness debate heats up
* ECB official warns against more stimulus
* Stocks recover
* Oil rebounds
(Updates with early U.S. market activity, changes dateline,
By Caroline Valetkevitch
NEW YORK, Sept 14 The U.S. Treasury yield curve
hit its steepest in more than two months on Wednesday, while
stock markets around the world inched higher as Apple
Deepening worries over the ability of the world's major
central banks to stimulate growth have triggered a recent rise
in bond yields and sparked a bout of risk-off trading.
Euro zone bond yields rose across the board after European
Central Bank Executive Board member Sabine Lautenschlaeger said
the central bank should hold off on new monetary easing
Most yields touched their highest levels since Britain's vote
to leave the European Union in late June, extending a rise that
started after the ECB's policy meeting last week disappointed
investors by introducing no new easing measures.
In the U.S. market, bond weakness ebbed after a dramatic
selloff on Tuesday sent long-dated yields to three-month highs.
U.S. long-dated bonds have underperformed in the past month,
in line Japanese government bonds as the Bank of Japan studies
options to steepen the yield curve.
On Wednesday, the gap between five-year Treasury note yields
and 30-year bond yields widened as far as
123.40 basis points, the widest since July 1.
Benchmark 10-year Treasury notes were last up
5/32 in price to yield 1.72 percent, from 1.73 percent on
The U.S. dollar eased from an eight-day high against the yen
as doubts grew that the BOJ would intensify its stimulative
monetary policies next week.
The BOJ will consider making negative interest rates the
centerpiece of future monetary easing, sources told Reuters. The
move would underscore concerns over limits to economic stimulus
"The market does perceive to a certain extent that the BOJ
is tapped," said Dean Popplewell, chief currency strategist at
Oanda in Toronto.
At the same time, uncertainty about the outlook for U.S.
interest rates pressured the greenback against other currencies.
The dollar eased from a session high of 103.34 yen touched
in early trading and was last up just 0.05 percent against the
Japanese currency at 102.58 yen.
Shares of Apple jumped 3.4 percent to $111.65, helping U.S.
stocks recover from losses the previous day, on reports of
strong demand for the new iPhone.
The Dow Jones industrial average was up 13.25 points,
or 0.07 percent, to 18,080, the S&P 500 had gained 3.19
points, or 0.15 percent, to 2,130.21 and the Nasdaq Composite
had added 24.08 points, or 0.47 percent, to 5,179.33.
MSCI's all-country world stock index was up
0.1 percent, while European shares were near flat.
Oil prices fell, extending recent losses.
Brent crude futures were down 1.4 percent at $46.44
a barrel, while U.S. crude was down 1.7 percent at
Data showed large weekly builds in U.S. petroleum products
that overshadowed a surprise draw in crude stockpiles.
(Additional reporting by Karen Brettell and Sam Forgione in New
York; Vikram Subhedar in London; Editing by Meredith Mazzilli)