* MSCI world index down 0.63 percent, off recent highs
* Yields drop to 3-1/2 month lows on global growth concern
* Yen rises on safe-haven bids, dollar rebounds
* Oil hits 2016 highs before dipping on profit taking
(Updates with U.S. afternoon trading)
By Saqib Iqbal Ahmed
NEW YORK, June 9 (Reuters) - Bond prices and the yen rose on
Thursday as investors sought the safety of low-risk assets,
while crude oil prices and stocks retreated after recent gains.
An index of world equity markets snapped a five-day winning
streak. Oil prices dipped as a firmer dollar sparked
profit-taking after three sessions of gains.
The yen, which investors prefer in times of market
uncertainty, reached a three-year peak against the euro
EURJPY= and five-week high versus the U.S. dollar JPY .
"It's generally a cautious mood today. You have stocks lower
and yields lower," said Eric Viloria, currency strategist at
Wells Fargo (NYSE:WFC) Securities in New York.
The dollar index, which tracks the greenback against the
euro, yen and four other currencies .DXY , rebounded from
five-week lows set on Wednesday. It was up 0.4 percent at
93.963.
The greenback was supported by an unexpected drop in U.S.
jobless claims and a stronger-than-expected rise in wholesale
sales in April. The data soothed some concerns about the U.S.
economy decelerating in the second quarter.
Oil, which earlier hit a 2016 high on supply worries, was
pressured by the firmer dollar. A stronger dollar makes oil
dearer for holders of other currencies.
"So far this looks like a modest technical correction
following three days of gains, rather than a major reversal,"
said Tim Evans, energy futures specialist at Citi Futures in New
York.
The MSCI world equity index .MIWD00000PUS of shares in 45
nations, pulled back from a six-week high hit on Wednesday and
was down 0.63 percent.
On Wall Street, stocks fell after three days of gains,
weighed down by financials and energy companies.
The Dow Jones industrial average .DJI fell 21.82 points,
or 0.12 percent, at 17,983.23, the S&P 500 .SPX lost 4.01
points, or 0.19 percent, at 2,115.11 and the Nasdaq Composite
.IXIC dropped 16.01 points, or 0.32 percent, at 4,958.64.
Europe's broad FTSEurofirst 300 index .FTEU3 closed down
0.94 percent at 1,340.20. Stocks were hurt by weaker
commodities-related shares and comments from European Central
Bank President Mario Draghi that Europe is at risk of suffering
lasting economic damage from weak productivity and low growth.
In the bond market, U.S. Treasury yields dipped to
three-and-a-half month lows as falling oil and stock prices
boosted demand for safe haven debt.
The Treasury Department sold $12 billion worth of 30-year
bonds at a yield of 2.475 percent, which was the lowest at an
auction of this maturity since January 2015.
"The global investing community continues to find value in
the U.S. since rates in other developed markets are negative or
near-zero," Tom Simons, money market strategist at Jefferies &
Co, wrote in a note.
Benchmark U.S. 10-year notes US10YT=RR gained 1/32 in
price to yield 1.671 percent, the lowest since Feb. 24.
Brent crude LCOc1 settled down 56 cents, or 1.07 percent
at $51.95 a barrel, while U.S. crude CLc1 settled down 67
cents, or 1.31 percent, at $50.56.
The firmer dollar sent three-month copper CMCU3 down 2
percent to near a four-month low of $4,485.50 a tonne.
Spot gold XAU= hit a three-week high and was up 0.6
percent to $1,269.35 an ounce.