Euro Slips, Bonds Rally on ECB as S&P 500 Drops With Oil

The euro weakened to a 13-month low and sovereign bonds rallied as the European Central Bank unexpectedly cut interest rates and announced a bond-buying program. U.S. stocks fell for a third day as energy shares slumped with oil, while Treasuries declined.

The Stoxx Europe 600 Index climbed 1.1 percent to the highest in two months. The Standard & Poor’s 500 Index dropped 0.2 percent at 4 p.m. in New York, after rising 0.5 percent earlier. The euro weakened against all of its 31 peers, falling below $1.30 for the first time since July 2013. The yield on 10-year rates from Ireland to Italy dropped to record lows, and two-year note yields dropped below zero in eight European countries. Treasury yields rose to a seven-year high versus their developed-market peers. Crude fell 1.1 percent.