The S&P 500 and the Nasdaq Composite also jumped over 2 percent a piece. But signs of a slowdown overseas and almost two months of market volatility - including a sharp selloff last week - have clouded an otherwise mostly rosy US picture in which the economy is growing well above potential and unemployment is the lowest since the 1960s.
Add to that the prospect of a shift in the global trade landscape following Saturday's dinner meeting between U.S. President Donald Trump and Chinese leader Xi Jinping, as well as the risk of a government shutdown in Washington, and the coming week could prove to be a significant one for the Treasury market. -China tensions could trigger a knee-jerk rally but say the move would likely be short lived unless there are substantive compromise from both sides - most notably if Xi can persuade Trump to postpone a sharp tariff hike on Chinese goods due to take effect January 1. Trump heads to the Group of 20 meeting tomorrow where investors will look for progress in his trade war with China. "Not even a little bit", Trump said, using Powell's nickname. "That being said, given the headwinds out there I can't see it being sustained", said Gary Waite, portfolio manager at Walker Crips in London.
In an appearance earlier this month, Powell cited strong annual economic growth above 3 percent and unemployment at a near five-decade low of 3.7 percent.
"The likelihood of slower USA monetary tightening caused the dollar to slump against currencies, particularly the euro, which could soon benefit from an European Central Bank rate hike".
The British pound gained 0.6 percent.
That comment, which came just days after Trump's latest criticisms, was well-received by markets: US stocks surged, with the Dow Jones Industrial Average and S&P 500 flipping into positive territory for November.
Britain's 10-year yield declined two basis points to 1.377 percent.
Germany's 10-year yield was steady at 0.35 percent.
Italy's yield spread over Germany - effectively the premium investors require to hold Italian risk - tightened to 290 bps.
Palladium was up almost 3 percent at $1,184.35 per ounce, after hitting the record high.
The S&P 500 index rose 12 points, or 0.5 percent, to 2,695.
Comments from Russian President Vladimir Putin stating how Russia is comfortable with the current level of Oil prices at around $60 compounded downside pressures with Brent Crude trading around $58.00 as of time of writing. It has slumped 21 percent this month, during which it fell to a 13-month trough of US$58.41.
But the report highlighted stock prices that are high by some measures, commercial real estate values "growing faster than rents" and the willingness of lenders to fund risky corporate loans.
The euro was a shade higher at US$1.1374 after advancing 0.7 percent the previous day. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.