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Us Bond Yields

All articles tagged with #us bond yields

financeeconomics1 year ago

"Global Markets Brace for Volatility Amid Inflation Concerns and Housing Data"

Asian markets are expected to open under downward pressure due to the sharp rise in U.S. bond yields and the dollar following a hotter-than-expected U.S. inflation report. Japan's Nikkei 225 is on track for its worst week this year, while investors await key economic data from China, Japan, and New Zealand. The Bank of Japan's potential interest rate hike and Chinese house prices for February will be closely watched, as a turnaround in the Chinese property sector is crucial for the broader economy. Despite these pressures, a bullish case could be made for Asian risk assets, with chipmakers and tech stocks potentially receiving a boost from Apple supplier Foxconn's positive revenue outlook.

economy2 years ago

Rising US Bond Yields Spark Recession Fears and Economic Risk

The surge in long-term US Treasury yields, with the 30-year yield briefly surpassing 5%, is raising concerns about a "hard landing" and increasing the risk of a recession. The high bond yields make borrowing more expensive for consumers and companies, undermining the economy. The continued resilience of the job market has led to expectations of further interest rate hikes by the Federal Reserve, which had hoped for a "soft landing." The rise in yields, coupled with rising federal budget deficits, an auto workers strike, and the resumption of student loan payments, could push the economy into a recession.

finance2 years ago

Federal Reserve Remains Silent as Bond Yields Surge and Luxury Bets on China Fade

The Federal Reserve has disappointed markets by maintaining its stance on interest rates, signaling that one more rate hike this year is still possible and rates will not be coming down anytime soon. Despite concerns about rising U.S. bond yields, Fed officials remain vigilant about inflation and are closely monitoring the U.S. economy, which appears to be re-accelerating. The recent spike in crude oil prices has reversed, and job openings data will provide further clues about the tightness of the job market. The Fed's hawkishness has kept futures markets pricing a 50-50 chance of another rate hike by year-end, while rising yields and bond volatility continue to impact markets. The dollar has benefited from these developments, reaching its highest level of the year against the euro. U.S. stocks are facing uncertainty as investors navigate higher borrowing rates and better growth projections. In company news, Birkenstock targets a $10 billion valuation in its U.S. IPO, while Boohoo reports a decline in revenue.

finance2 years ago

Market Volatility: Asian and Global Markets React to China Concerns, Oil Prices, and Bond Market Pressure

Global markets, including U.S. and Asian stocks, are caught in a "doom loop" characterized by rising U.S. bond yields, a strong dollar, higher oil prices, tightening financial conditions, deepening growth fears, decreasing risk appetite, and fragile equity markets. Despite sporadic rebounds, the S&P 500 has struggled to gain momentum this month. Meanwhile, China's Evergrande crisis continues to deepen, impacting the country's property market and global copper prices. While there are signs of a modest recovery in China's economy, it may take time for momentum to shift. Key developments to watch include Australia's retail sales, Germany's CPI inflation, and a speech by Fed Chair Jerome Powell.

finance2 years ago

Global Markets Find Relief as Fed's Decision Looms

Asian markets are showing signs of improvement as the "peak Fed" draws closer, U.S. bond yields may be reaching their peak, and the dollar weakens. If U.S. inflation data for June falls below expectations, it could benefit Asian stocks, bonds, and currencies. While some Fed officials believe interest rates need to rise further to control inflation, the end of the tightening cycle is in sight. Chinese inflation figures were disappointing, with zero consumer price inflation and a slump in producer price inflation. However, a potential turnaround in the tech sector and a near $1 billion fine on Ant Group may provide hope for investors.

commodities2 years ago

Gold prices rise despite rate hike concerns and inflation pressures.

Gold prices rebounded from sharp overnight losses to post mild gains in midday U.S. trading Thursday, helped by a sharp drop in the U.S. dollar index and a decline in U.S. Treasury yields. However, gains in gold have been constrained after the end of this week's FOMC meeting of the Federal Reserve, in which the Fed paused on its rate-hike cycle, but the FOMC statement and Fed Chair Powell's press conference leaned firmly hawkish on U.S. monetary policy. China's central bank made another move to ease its monetary policy by cutting another key interest rate.

finance2 years ago

Banking anxiety eases, Asian stocks surge led by Alibaba.

Asian markets are likely to be tempered by a further rebound in US bond yields despite growing optimism that the banking shock is abating. The Bank of Thailand is set to implement its fifth consecutive quarter-point rate hike in an attempt to get inflation back within target. China's Alibaba Group plans to split its business into six main units covering e-commerce, media, and the cloud. Australian inflation figures for February and a raft of data from Vietnam will also be released.