COMMODITIES PRICES REBOUNDED IN U.S. TRADING ON MONDAY AS BIG DROPS EARLIER IN THE DAY BROUGHT BARGAIN HUNTERS TO OIL AND METALS, BUT THE HUGE RECENT SWINGS IN THOSE MARKETS DENTED APPETITES FOR RISK, DRAGGING STOCKS SHARPLY LOWER AROUND THE GLOBE, REUTERS REPORTED. U.S. STOCK INDEXES FELL IN SYMPATHY WITH MARKETS IN EUROPE AND ASIA, PROMPTING INVESTORS TO SEEK THE RELATIVE SAFETY OF CASH AND BONDS. THE BENCHMARK U.S. 10-YEAR TREASURY NOTE RALLIED FOR A THIRD STRAIGHT SESSION, BRIEFLY BRINGING ITS YIELD TO BELOW 5 PERCENT FOR THE FIRST TIME IN NEARLY A MONTH, AND EUROPEAN GOVERNMENT BONDS ROSE AS WELL. IN EMERGING MARKETS, SUCH AS INDIA, RUSSIA AND ACROSS LATIN AMERICA, LOCAL STOCKS, BONDS AND CURRENCIES PLUMMETED ON INVESTOR CONCERNS ABOUT PROSPECTS FOR HIGHER INTEREST RATES AND SLUMPING COMMODITY PRICES. INDIAN SHARES WERE DOWN NEARLY 4 PERCENT AT A 10-WEEK LOW, AND SELLING WAS SO EXTREME AT ONE POINT THAT TRADING WAS HALTED FOR AN HOUR. "A REDUCTION IN RISK APPETITE -- FOCUSED ON COMMODITIES, EQUITIES, AND EMERGING MARKETS -- HAS PRODUCED A RALLY IN DEVELOPED COUNTRY GOVERNMENT BOND MARKETS, OVERWHELMING FEARS OF HIGHER INFLATION AND MORE AGGRESSIVE CENTRAL BANK TIGHTENING," SAID DAVID HENSLEY, J.P. MORGAN'S DIRECTOR OF GLOBAL ECONOMICS. COMMENTS FROM EURO ZONE FINANCE MINISTERS THAT THEY WERE NOT WORRIED ABOUT THE SINGLE CURRENCY'S RECENT APPRECIATION HELPED THE EURO RALLY BACK AGAINST THE DOLLAR AFTER STARTING THE DAY SOFTER. --MORE
