GLOBAL MARKETS-Brent at 11-month high, yields give up day's gains

* Shanghai stocks close at 5-year high
* Dollar slips as Treasury yields give up gains

(Updates prices, comment)
By Rodrigo Campos
NEW YORK, Jan 12 (Reuters) - Oil prices hit their highest in
nearly a year on Tuesday on lower supply bets and Treasury
yields tightened after strong demand at an auction.
Stocks, meanwhile, edged higher, led by Asia, with eyes on
U.S. earnings and U.S. President-elect Joe Biden's inauguration
next week.
The 10-year U.S. yield touched its highest since March but
tightened to near flat on the day after a $38 billion offering
from the Treasury was well bid. The yield has risen every
session this year on expectations of a massive stimulus package
from the incoming Democratic administration.
Brent crude prices hit their highest since February as
tighter supply and expectations of a drop in U.S. inventories
offset concerns over rising coronavirus cases globally. Saudi
Arabia said it plans to cut output by an extra 1 million barrels
per day in February and March.
"Saudi Arabia in particular is ensuring, through its
additional voluntary production cuts, that the market is
undersupplied if anything," said Eugen Weinberg of Commerzbank.
Brent LCOc1 was at $56.55, up 1.6% on the day, while U.S.
crude CLc1 recently rose 1.74% to $53.16 per barrel.
On Wall Street, stocks fluctuated near unchanged for the
session, not far from record highs. The Dow .DJI rose 69.3
points, or 0.22%, to 31,077.99, the S&P 500 .SPX gained 1.13
points, or 0.03%, to 3,800.74 and the Nasdaq Composite .IXIC
added 24.72 points, or 0.19%, to 13,061.15.
The pan-European STOXX 600 index .STOXX rose 0.05% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.31%.
Emerging market stocks rose 0.54%, while Nikkei futures
NKc1 rose 0.50%. Mainland Chinese shares .SSEC gained 2.2%
overnight to close at their highest in over five years.
Democrats said they will give President Donald Trump one
last chance on Tuesday to leave office days before his term
expires or face an unprecedented second impeachment over his
supporters' deadly Jan. 6 assault on the U.S. Capitol.
An impeachment trial could proceed even after Trump leaves
office. Some Democrats have expressed concern that a trial could
hamper Biden's agenda, slowing confirmation of his appointees
and distracting from legislative priorities such as a new
coronavirus relief package.
"Even if (additional stimulus) is delayed, it's going to be
a matter of days, maybe weeks, not months. The question is the
shape and form of it," said Keith Buchanan, portfolio manager at
GlobAlt in Atlanta.
Benchmark U.S. government 10-year debt US10YT=RR last rose
1/32 in price to yield 1.1325%, from 1.134% late on Monday. The
yield hit 1.187% earlier in the session.
The U.S. dollar was down after hitting its highest since
December on Monday, and the tighter Treasury yields pushed the
greenback down further.
The dollar index =USD fell 0.452%, with the euro EUR= up
0.44% to $1.2203.
The Japanese yen strengthened 0.48% versus the greenback at
103.76 per dollar, while Sterling GBP= was last trading at
$1.3661, up 1.09% on the day.
Spot gold XAU= added 0.5% to $1,854.17 an ounce. Silver
XAG= gained 2.52% to $25.55.
Bitcoin BTC=BTSP last fell 3.86% to $34,087.00.

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