* Markets steady after yield curve raised recession worries
* Benchmark U.S. Treasury yields up after hitting 15-month low
* MSCI global stock gauge gains after two-day swoon
* Oil rises as supply cuts outweigh economic worry (Updates with open of U.S. markets; changes dateline, previous London)
By Lewis Krauskopf
NEW YORK, March 26 (Reuters) - Benchmark U.S. Treasury yields rebounded off of 15-month lows on Tuesday while global stock markets broadly surged after a two-session swoon, as risk appetite improved after worries of an economic recession had clouded trading since late last week.
Oil prices also jumped, while safe-haven assets such as gold and the Japanese yen lost ground.
Markets have been rattled since Friday, when the 3-month U.S. Treasury yield exceeded the yield on the 10-year note, an inversion of the yield curve that is widely seen as an indicator of a recession.
“After a couple of days where investors focused solely on the chances of recession in the U.S. and concerns about slower growth, today is not surprisingly a day where they rethink those probabilities,” said Kate Warne, investment strategist at Edward Jones in St. Louis.
“What we have is lots of signs of slower growth,” Warne said. “We actually have very few signs of recession.”
The Dow Jones Industrial Average rose 266.76 points, or 1.05 percent, to 25,783.59, the S&P 500 gained 30.68 points, or 1.10 percent, to 2,829.04 and the Nasdaq Composite added 93.61 points, or 1.23 percent, to 7,731.16.
Financial stocks rose 0.9 percent after five sessions of declines.
MSCI’s gauge of stocks across the globe surged 0.95 percent, following a two-day losing streak.
The pan-European STOXX 600 index rose 0.84 percent after four sessions of losses.
Benchmark 10-year U.S. Treasury yields rose off 15-month lows as markets steadied.
“This morning, starting in the overnight, you really had the first sign of stability in risk assets,” said John Briggs, head of strategy for the Americas at NatWest Markets in Stamford, Connecticut. “I think you’re just seeing a bit of a pullback in terms of the poor sentiment that dominated the past few days.”
Benchmark 10-year notes last fell 5/32 in price to yield 2.4354 percent, from 2.418 percent late on Monday. The yield fell as low as 2.377 percent on Monday.
Germany’s 10-year bond yield remained near 2-1/2-year lows at below zero percent.
The dollar index, which measures the greenback against a basket of six major currencies, rose 0.07 percent, with the euro down 0.14 percent to $1.1295.
Oil rose as OPEC supply cuts and expectations of lower U.S. inventories outweighed concern about weaker demand due to an economic slowdown.
U.S. crude surged 2.09 percent to $60.05 per barrel and Brent was last at $67.91, up 1.04 percent.
Gold retreated from the more than 3-week highs touched in the previous session.
Spot gold dropped 0.5 percent to $1,315.76 an ounce.
Additional reporting by Karen Brettell and Richard Leong in New York, Marc Jones in London; Editing by Bernadette Baum