US STOCKS-Wall St pares early losses as US Treasuries rebound
* AOL jumps to 15-month high on Verizon's $4.4 bln offer
* 10-yr U.S. Treasury prices turn positive
* Gap falls after first-qtr sales decline
* Indexes down: Dow 0.2 pct, S&P 0.3 pct, Nasdaq 0.4 pct (Adds details, changes comment, updates prices)
By Tanya Agrawal
May 12 (Reuters) - U.S. stocks pared most of their early losses on Tuesday after Treasury prices turned positive.
Stocks indexes had earlier fallen to their lowest in about a week, tracking European markets amid a global bond rout.
Ten-year U.S. Treasury yields, the benchmark for global borrowing costs, touched their highest since mid-November earlier in the day. Elevated U.S. yields mean higher borrowing costs, which can affect stock markets across the world.
Bonds have been the primary driver in the stocks market in recent days. Continuación...