By Michael Connor
NEW YORK (Reuters) - The dollar bounced back from four-month lows on Monday, while Greek bond yields jumped on worries the country would not be able to make its debt payments.
Wall Street added slightly to gains, pushing the benchmark S&P 500 to a fresh all-time high.
Oil prices retreated, as supply worries, triggered by advances by Islamic State militants in Iraqi, eased. U.S. Treasuries were weaker.
Greek two-year sovereign bond yields rose nearly 300 bps to just shy of 24 percent as investors fretted the country would be unable to make a debt repayment to the International Monetary Fund next month.
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"Greece is running on fumes and the risk of non-payment of some form is riding high ... These are desperate times and desperate stakes," Rabobank fixed income strategist Richard McGuire said.
The country made a May 12 payment to the IMF only by emptying an IMF holding account, and a leaked IMF memo acknowledged Greece had little chance of making a scheduled June 5 payment. Many in the market say the next two weeks will be crucial for the country.
The dollar was last up nearly 1 percent at $1.1352 against the euro, which had risen more than 8 percent against the U.S. currency since April 13.
A recent run of softer-than-expected U.S. economic data has encouraged bets that the Federal Reserve will hold off on its first interest rate hikes in nearly a decade, and that has interrupted several months of dollar gains against key world currencies.
Adding fuel to that, Chicago Fed President Charles Evans said Monday that while a rate hike could come as early as June, they should start rising early in 2016. Evans is considered one of the Fed's most dovish members, generally in favor of looser policy.
Wall Street edged up slightly. The Dow Jones industrial average was up 14.91 points, or 0.08 percent, at 18,287.47, the S&P 500 added 3.88 points, or 0.18 percent, at 2,126.61 and the Nasdaq Composite was up 13.95 points, or 0.28 percent, at 5,062.24.
The MSCI world equity index, which tracks shares in 45 nations, dropped modestly, shedding 0.12 point, or 0.03 percent, to 442.24.
In Europe, the pan-European FTSEurofirst 300 stocks index was little changed as the market was stung by lackluster energy sector earnings, volatile financial shares and Greece's precarious finances.
Asian shares had earlier mostly fallen as investors fretted over U.S. data on Friday that suggested growth was slowing in the world's largest economy.
U.S. Treasuries prices fell. Ten-year Treasury yields, which fell after Friday's data, rose and last stood at 2.2073 percent, reflecting a price decline of 19/32.
German 10-year yields were steady at 0.65 percent.
Brent crude was off 42 cents to $66.39 a barrel after Goldman Sachs analysts slashed their 2016-2020 price outlook due to expectations for persistently high supply.
That curbed worries about supply interruptions amid a major advance by Islamic State militants in Iraq and renewed air strikes by a Saudi-led coalition against Houthi militia in Yemen.
U.S. light sweet crude was last off 8 cents at 69.89 a barrel.
(Additional reporting by Hideyuki Sano in Tokyo, Patrick Graham, John Geddie and Atul Prakash in London; Editing by Bernadette Baum)
