U.S. stocks advanced after bond yields fell and investors speculated General Motors Corp. is close to a settlement with the United Auto Workers union.

GM climbed to the highest in four months after Goldman, Sachs & Co. advised clients to buy shares of the biggest U.S. automaker. Telephone companies and utilities rallied the most in the Standard & Poor’s 500 Index as lower interest rates make their dividends more attractive.

The yield on the benchmark 10-year Treasury note fell 3 basis points to 5.10 percent. Prices rose on speculation hedge- fund losses linked to subprime mortgage loans will fuel demand for safer bonds. Crude oil futures fell the most in two weeks.

(Bloomberg News Service)