* U.S. 2/10 yield curve hits steepest since July 2022. * Fed funds futures price in 61% chance of 50-bp cut. * Focus on U.S. retail sales ahead of Fed decision on Wednesday. By Matt Tracy.
U.S. Treasury yields were flat on Monday after a Friday bond rally, as investors weigh the odds of a half-percentage point interest rate cut by the Federal Reserve this week.
U.S. Treasury yields moved lower on Friday as the possibility of a supersized interest rate cut by the Federal Reserve next week gained ground again. Former New York Federal Reserve President Bill Dudley said on Thursday there was a strong case for a 50 basis point interest rate cut at the Fed's Sept. 17-18 rate-setting meeting.
Euro zone yields fell on Friday, mirroring a decline in U.S. Treasury yields after media reports fuelled speculation about a big interest rate cut by the Federal Reserve next week.
Euro zone government bond yields fell on Friday, mirroring a decline in U.S. Treasury yields after media reports raised the chances of a big rate cut by the Federal Reserve next week.
Japanese government bond yields declined on Friday, with the benchmark 10-year yield brushing a one-month low as U.S. Treasury yields dropped and investors adjusted positions ahead of a holiday weekend in Japan. The 10-year JGB yield was down 2 basis points at 0.84% as of 0500 GMT, after earlier touching its lowest since Aug. 15 at 0.83%. Futures of 10-year JGBs rose 0.21 points to 144.75 yen.
Treasury yields fell in Asia on Friday while rate futures rallied in reaction to media reports suggesting the Federal Reserve's decision on whether to cut by 25 or 50 basis points next week would be a close call.
U.S. Treasury yields rose on Thursday as economic data did not upend expectations the Federal Reserve will begin a gradual decrease in interest rates next week, and as the European Central Bank cut rates but gave little clarity on future easing. U.S. producer prices increased slightly more than expected in August, but the trend remained consistent with subsiding inflation.
U.S. Treasury yields were roughly unchanged on Thursday after economic data cemented investor expectations the Federal Reserve will begin a gradual decrease in interest rates next week. U.S. producer prices increased slightly more than expected in August, but the trend remained consistent with subsiding inflation.
Japanese government bond yields rose on Thursday, tracking U.S. Treasury yields, while there was limited reaction to a hawkish Bank of Japan policymaker's remarks on interest rates. The 10-year JGB yield rose 1 basis point to 0.86%, retreating from 0.87% scaled earlier in the session.
* Major U.S. stock indexes turn green, Nasdaq out front. * Bets cemented on 25 bp rate cut from the Fed. * Oil prices bounce back as supply, hurricane concerns offset demand worries. By Stephen Culp.
Shares of AT&T Inc (T) saw a 1.9% to $21.30 decline Wednesday morning, pressured by rising U.S. Treasury yields in the wake of the August Consumer Price Index report, which showed an unexpected increase in core inflation.
* Major U.S. stock indexes red; Dow off most. * Bets cemented on 25 bp rate cut from the Fed. * Bond yields fall in wake of Presidential debate. * Oil prices steady as supply, hurricane concerns offset demand worries. By Stephen Culp.
U.S. Treasury yields rose on Wednesday after the release of August data showing U.S. consumer prices rose marginally while underlying inflation remained sticky, curbing expectations for a large interest rate cut by the Federal Reserve next week. Excluding the volatile food and energy components, the Consumer Price Index climbed 0.3% in August after rising 0.2% in July.
U.S. Treasury prices rallied on Wednesday, pushing benchmark 10-year yields to a new 15-month low, as the probability of a win in the November presidential election by Democrat Kamala Harris rose after a televised debate against Republican Donald Trump. Ten-year Treasury yields dipped to a session trough of 3.609% as prices rose, the lowest since June 2023.
Japanese government bond yields fell on Wednesday, tracking U.S. Treasury yields lower, as the prospects for the Bank of Japan's potential interest rate increase eased amid a stronger yen and declines in oil prices.
Wall Street reversed an earlier sell-off to close higher on Wednesday, and Brent crude prices rebounded from 3-1/2 year lows as a key inflation report cemented expectations that the U.S. Federal Reserve will issue a 25-basis point rate cut next week. Investors also parsed Tuesday night's U.S. Presidential debate to gauge potential policy shifts after the November election.
A look at the day ahead in Asian markets. The question for investors is whether this should be taken as a positive 'risk on' signal, or not? If disinflationary dynamics push U.S. inflation lower then the Fed may cut interest rates more than it had planned, weighing on Treasury yields and the dollar, and giving a boost to Asian and emerging market assets.
U.S. Treasury yields declined on Tuesday on economic worries, ahead of a key U.S. presidential candidates' debate and before Wednesday's release of inflation data, which could fuel speculation on the size of the Federal Reserve's first interest rate cut.
U.S. Treasury yields were roughly unchanged on Tuesday ahead of a U.S. presidential candidates' debate and before Wednesday's release of inflation data, which could fuel speculation on the size of the Federal Reserve's first interest rate cut.
* Two-year yields inch higher after Friday's rally. * Investors brace for Treasury and corporate debt supply. * Wednesday's inflation data could give some clues on rate cuts. * Presidential debate could add to volatility this week. By Davide Barbuscia.
U.S. Treasury yields rose on Monday as some investors took profits after a bond rally last week driven by a weakening labor market, which left market participants uncertain over the size of an expected Federal Reserve interest rate cut this month.
The U.S. Treasury yield curve officially exited its prolonged inversion on Friday, Sept. 6. This marks the end of over two years when short-term yields were higher than those on long-term bonds ? a rare and closely watched economic phenomenon. As of Monday, the 10-year Treasury yield stood at 3.72%, with the two-year at 3.65%. That?s a spread of 7 basis points.
Benchmark 10-year Treasury yields fell to a 15-month low on Friday before paring back in choppy trading as August's payrolls report failed to offer a clear signal on the size of an expected Federal Reserve interest rate cut later this month. Nonfarm payrolls increased by 142,000 jobs last month after a downwardly revised 89,000 rise in July.
* US non-farm payrolls up 142,000 in Aug, unemployment 4.2% * Shares lose ground, dollar rises, oil falls. * Fed's Williams says time has arrived to start rate cuts. By Sin?ad Carew and Nell Mackenzie.
Benchmark 10-year Treasury yields turned higher on Friday after earlier reaching a 15-month low, as August's payrolls report failed to offer a clear signal on the size of an expected Federal Reserve interest rate cut later this month. Nonfarm payrolls increased by 142,000 jobs last month after a downwardly revised 89,000 rise in July. The unemployment rate fell to 4.2%, from 4.3% the prior month.
U.S. Treasury yields fell for a fourth straight day to one-month low on Friday in jittery trading ahead of the upcoming monthly jobs report that could determine the size of the Federal Reserve's first rate cut in five years this month.
MSCI's global equities gauge fell more than 1% on Friday and U.S. Treasury yields dropped as investors worried about the health of the economy after a mixed U.S. jobs report cemented expectations for the Federal Reserve to lower interest rates this month, but created uncertainty about the size of the cut.
* Wall Street closes lower. * Dollar index dips, yen gains. * Treasury yields fall; oil sell-off pauses. By Sin?ad Carew and Marc Jones. MSCI's global equities index edged down on Thursday as investors digested mixed economic data while they anxiously waited for Friday's crucial U.S. jobs report and oil prices held near 14-month lows as demand worries offset draws on inventories.
* Stocks turn red after gaining earlier. * Dollar trading choppy, falls slightly against yen. * Treasury yields fall; oil prices settle little changed. By Sin?ad Carew and Marc Jones.
* ADP shows smallest job gain since January 2021. * Traders price in 45% chance of 50 bps cut at September meeting. By Karen Brettell. U.S. Treasury yields fell and interest rate sensitive two-year yields reached a 15-month low on Thursday after ADP jobs data showed employers added fewer jobs than anticipated in August, before Friday's keenly awaited government jobs report.
* Stocks turn red after gaining earlier. * Dollar rises slightly against yen. * Treasury yields fall; oil prices rebound. By Sin?ad Carew and Marc Jones. MSCI's global equities index edged down on Thursday as investors assessed weak jobs data and steady services activity while oil prices bounced back due to a possible delay to output increases and a decline in U.S. inventories.
Lower-than-expected private employment growth in August triggered positive reactions Thursday in interest rate-sensitive assets like gold and the Japanese yen, while pushing Treasury yields lower as traders bolster their bets on a 50-basis-point rate cut by the Federal Reserve this month.
Japanese government bond yields sank on Thursday, tracking declines in U.S. Treasury yields after more soft economic data stoked bets the Federal Reserve may cut interest rates by a super-sized 50 basis points this month. The 10-year JGB yield dropped 2 bps to 0.865% as of 0441 GMT, after dipping to a two-week low of 0.860% earlier in the session.
MSCI's global equities index edged down on Thursday as investors digested mixed economic data while they anxiously waited for Friday's crucial U.S. jobs report and oil prices held near 14-month lows as demand worries offset draws on inventories. U.S. Treasury yields fell and two-year yields reached a 15-month low after ADP's private sector August jobs data showed fewer new jobs than anticipated.
* Wall St stocks in the red after European index ends off 1% * Oil prices down again after hitting Dec lows on Tuesday. * U.S. Treasury yields off; dollar falls against Japan's yen. By Sin?ad Carew and Tom Wilson.
* Wall Street stocks down slightly; European index off ~1% * Oil prices fell again after hitting Dec lows on Tuesday. * U.S. Treasury yields; dollar falls against Japan's yen. By Sin?ad Carew and Tom Wilson.
Treasury yields fell on Wednesday and the closely watched yield curve between two-year and 10-year notes turned positive after data showed that U.S. job openings dropped to a 3-1/2-year low in July. The data comes before Friday's jobs report for August, which may be key as to whether the Federal Reserve's expected interest rate cut at its Sept. 17-18 meeting will be by 25 or 50 basis points.
The closely watched yield curve between two-year and 10-year Treasury note yields turned positive on Wednesday, which may be a bearish indicator for the U.S. economy. This part of the yield curve has been mostly inverted since July 2022, and only briefly turned positive on August 5 before turning back negative again.
Japanese government bond yields declined on Wednesday as U.S. Treasury yields fell, while investors weighed the outlook for the world's largest economy ahead of Friday's non-farm payrolls. The benchmark 10-year JGB yield was down 3.5 basis points at 0.885% as of 0430 GMT, reversing its rise over the previous two days, while 10-year JGB futures rose 0.38 yen to 144.79 yen.
* Asia stocks fall, Nikkei slides 3% * * US data deluge keeps markets on edge. By Rae Wee. Asian shares and global stock futures fell on Wednesday in the wake of a tech selloff, while the dollar and yen rose on safety bids and U.S. Treasury yields edged lower as investors fretted over the outlook for the world's largest economy.
* Manufacturing data subdued, US jobs report in focus. * Global stock index falls, dollar hits two-week high. * Yen gains as BOJ seen continuing rate hikes. By Sin?ad Carew and Yoruk Bahceli.
* ISM manufacturing PMI rose to 47.2 in Aug, still indicating contraction. * Fed expected to cut rates by at least 25 bps at September meeting. * Two-year Treasury yield fell 6.2 bps, biggest drop since August 23. By Chuck Mikolajczak.
* Manufacturing data subdued, U.S. jobs report in focus. * Global stock index falls, dollar hits two-week high. * Oil prices drop to one-month low. * Yen gains as BOJ seen continuing rate hikes. By Sin?ad Carew and Yoruk Bahceli.
-MSCI's gauge of global equities fell sharply on Tuesday, with Wall Street stocks taking their biggest hit since early August while U.S. Treasury yields fell after manufacturing data spurred worries about the economy.
Bond yields drifted higher on Tuesday, while currencies and Asia's stock markets steadied as investors waited on a raft of data to determine how deeply the U.S. can cut interest rates. Ten-year Treasury yields were slightly higher at 3.919% and two-year yields rose a basis point to 3.935% as trade resumed in Asia following a U.S. holiday overnight.
Japanese government bond yields rose on Monday, tracking U.S. Treasury yields higher at the end of last week, while auctions for domestic bonds this week weighed on sentiment.
* PCE price index rose 0.2% in July, matching expectations. * Consumer spending rose 0.5% in July. * Market focus shifts towards jobs and labor over inflation. By Chuck Mikolajczak.
* Gold up over 2% so far this month. * Palladium up 4% in August. * Asia physical demand remains lacklustre. By Anushree Ashish Mukherjee. Gold softened on Friday as the dollar and Treasury yields firmed after U.S. inflation data matched expectations, but the bullion is set for a monthly gain as a September interest rate cut by the Federal Reserve remains in play.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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