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 yields fall after touching 6-month highs
* U.S. small business confidence rises in April
* Gap falls after first-qtr sales decline
* Indexes down: Dow 0.03 pct, S&P 0.12 pct, Nasdaq 0.06 pct (Updates to early afternoon)
By Tanya Agrawal
May 12 (Reuters) - U.S. stocks pared most of their early losses on Tuesday after Treasury yields fell from their six-month highs as some buyers came back to the market.
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. Continuación...