Federal Reserve: 1, bond markets: 0. That's more or less where it stands after Round One in the tussle over borrowing costs. February's bond selloff sent U.S. 10- and 30-year Treasury yields more than 30 basis points higher while governments from France to Australia saw their borrowing costs jump.
* Euro STOXX up 0.4% * German stocks hits record high. * Equities gain on economic optimism. * Treasury market remains calm after sell-off. * Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn. * Graphic: World FX rates http://tmsnrt.rs/2egbfVh. By Tom Wilson.
U.S. mortgage rates jumped by the most in nearly a year last week to their highest level since July on the heels of a surge in Treasury bond yields, which are moving up on expectations of an economic rebound in the months ahead as coronavirus vaccines reach a larger share of Americans.
Treasury prices have stabilized following last month's rout, but many investors say a continued recovery likely hinges on an imminent decision on U.S. capital rules for banks. A special exemption allowing banks to hold less capital compared with the size of their balance sheets is due to expire March 31, nearly a year after its adoption to facilitate the Federal Reserve response to the coronavirus pandemic. The exemption enables large banks to exclude their holdings of...
Central European currencies
recouped some recent losses on Wednesday as U.S. treasury yields
retreated, the dollar weakened and risk appetite grew, while
markets in the region eyed a central bank ...
* Euro STOXX up 0.7% * German stocks hits record high. * Equities gain on economic optimism. * Treasury market remains calm after sell-off. * Graphic: Global asset performance http://tmsnrt.rs/2yaDPgn. * Graphic: World FX rates http://tmsnrt.rs/2egbfVh. By Tom Wilson and Stanley White.
* Asian stock markets: https://tmsnrt.rs/2zpUAr4. * Equities enjoy gains due to economic optimism. * Treasury market remains calm after sell-off. * Aussie in focus after positive economic data. By Stanley White and Koh Gui Qing.
Shares from Asia to Europe gained on Wednesday, as a retreat in U.S. Treasury yields fuelled demand for riskier assets from oil to bitcoin and kept the dollar pinned down. The Euro STOXX 600 added 0.5%, with Frankfurt shares climbing 1% to a record high and London's FTSE gaining 1.1% before the UK's new budget is introduced, with measures to boost the economy.
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E. The safe-haven U.S. dollar remained broadly weaker on Wednesday as Treasury yields continued to retreat, restoring some calm to global markets and reigniting demand for riskier assets. Commodity-linked currencies including the Australian dollar and the Norwegian krone held on to sizeable two-day advances.
Shares from Asia to Europe gained on Wednesday, as a retreat in U.S. Treasury yields fuelled demand for riskier assets from oil to bitcoin and kept the dollar pinned down. The Euro STOXX 600 added 0.5%, with Frankfurt shares climbing 1% to a record high and London's FTSE gaining 1.1% before the UK's new budget is introduced, with measures to boost the economy.
The yield on the benchmark 10-year Treasury note is in a long-term trend lower and, with financial markets awash in cash, it could zigzag down to -0.5% a year from now, even if it drifts up from current levels, according to Guggenheim Investments.
Benchmark U.S. yields dipped
on Tuesday for a third straight day after jumping to a one-year
high last week, as comments from two Federal Reserve officials
failed to spark a move higher while ...
Benchmark U.S. Treasury yields
eased for a second straight session on Monday from a one-year
high hit last week as Federal Reserve officials continued to
downplay runaway inflation concerns, but a ...
Benchmark U.S. yields dipped on Tuesday
for a third straight session after jumping to a one-year high
last week, ahead of comments from two Federal Reserve officials
as investors look for data to ...
Some economists and market participants believe the Federal Reserve needs to speak more directly to a bond market that has seen yields surge amid uncertainty about the monetary policy outlook. Treasury yields shot higher last week, and higher long-term interest rates in theory could create unwanted headwinds to growth as the economy recovers from the coronavirus pandemic. Fed officials including New York Fed leader John Williams have said that rising yields are...
Gold prices edged higher on Tuesday as a
retreat in U.S. Treasury yields and optimism over the $1.9
trillion coronavirus relief bill lifted the allure of the
non-yielding metal.
Yields on most U.S. government bonds fell Monday, showing further signs of stabilizing after soaring to multi-month highs last week. The yield on the benchmark 10- year Treasury note settled at 1.444%, according to Tradeweb, down from 1.459% at Friday's close. Shorter-dated yields also headed lower, in a reversal from last week when investors bet that the Federal Reserve will start raising interest rates earlier than previously anticipated in response to an expected burst of...
* U.S. bond market rout eases. * J&J's COVID-19 vaccine to be available in 1-2 days. * Cyclical energy, banks, materials stocks jump. By Noel Randewich. March 1 - Wall Street surged on Monday as bond markets calmed after a month-long selloff, while another COVID-19 vaccine getting U.S. approval and fiscal stimulus bolstered expectations of a swift economic recovery.
Benchmark U.S. Treasury yields
eased for a second straight session on Monday from a one-year
high hit last week as Federal Reserve officials continued to
downplay runaway inflation concerns, but a ...
Yields on most U.S. government bonds fell Monday, showing further signs of stabilizing after soaring to multi-month highs last week. The yield on the benchmark 10- year Treasury note recently traded around 1.429%, according to Tradeweb, down from 1.459% at Friday's close. Shorter-dated yields also headed lower, in a reversal from last week when investors bet that the Federal Reserve will start raising interest rates earlier than previously anticipated in response to an...
Benchmark U.S. Treasury yields eased for
a second consecutive session on Monday after climbing to a
one-year high last week as Federal Reserve officials continued
to downplay runaway inflation ...
- Wall Street surged on Monday as bond markets calmed after a month-long selloff, while another COVID-19 vaccine getting U.S. approval and fiscal stimulus bolstered expectations of a swift economic recovery. Johnson & Johnson shares rose as it began shipping its single-dose vaccine after it became the third authorized COVID-19 vaccine in the United States over the weekend.
Latin American currencies firmed on
Monday, in line with broader emerging market peers, as yields on
U.S. Treasuries calmed after a sharp climb last week, while
rising commodity prices also lifted ...
* Bitcoin up 6% * Euro weakens. * U.S. Treasuries stabilise. * Australian dollar bounce. * Sterling rises on bets of vaccine-led economic rebound. * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E. By Julien Ponthus.
* Bitcoin up 4% * U.S. Treasuries stabilise. * Australian dollar, kiwi dollar bounce. * Sterling rises on bets of vaccine-led economic rebound. * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E. By Julien Ponthus. The Australian dollar and other riskier currencies rebounded against the U.S. dollar on Monday as U.S. Treasuries recovered from last week's losses.
* MSCI EM index set for best day in a month. * U.S. Treasury yields fall. * Turkey's economy expands 1.8% in 2020. * Russian rouble up; Moscow exchange starts longer trading hours. By Susan Mathew.
A shakeup in stocks accelerated by the past week's surge in Treasury yields has investors weighing how far a recent leadership rotation in the U.S. equity market can run, and its implications for the broader S&P 500 index.
A shakeup in stocks accelerated by the past week's surge in Treasury yields has investors weighing how far a recent leadership rotation in the U.S. equity market can run, and its implications for the broader S&P 500 index.
A shakeup in stocks accelerated by the past week's surge in Treasury yields has investors weighing how far a recent leadership rotation in the U.S. equity market can run, and its implications for the broader S&P 500 index.
A shakeup in stocks accelerated by the past week's surge in Treasury yields has investors weighing how far a recent leadership rotation in the U.S. equity market can run, and its implications for the broader S&P 500 index.
U.S. government bonds showed signs of stabilizing Friday, pushing yields lower a day after a chaotic session had sent them soaring. The yield on the benchmark 10- year Treasury note settled at 1.459%, according to Tradeweb, down from 1.513% at Thursday's close. The 10- year yield rose more than 0.3% in February for the largest one-month rise since November 2016..
* Graphic: World FX rates https://tmsnrt.rs/2RBWI5E. * Nasdaq rebounds, but MSCI's global index slides. * U.S. 10-year Treasury yields retreat. * Dollar lifted by rise in yields. * Gold posts worst month since November 2016. By Herbert Lash.
The market took a much-needed breather Friday and U.S. Treasuries pared Thursday's losses to see the 10-year fall 12 basis points to 1.42% and the 30-year 17 basis points to 2.11%. Municipals were steady at 1.14% in 10 years and 1.82% in 30.
* Gold down over 6% for the month. * U.S. consumer spending rebounds in January. * Silver set for first monthly fall in three. * Palladium, platinum set for monthly gain. By Brijesh Patel. Gold tumbled 3% to an eight-month low on Friday en route to its worst month since November 2016 as a stronger dollar and elevated U.S. Treasury yields hammered non-yielding bullion's appeal.
U.S. government bonds showed signs of stabilizing Friday, with yields swinging between small gains and declines after rising sharply a day earlier. The yield on the benchmark 10- year Treasury note recently traded around 1.501%, according to Tradeweb, down from 1.513% at Thursday's close. Yields, which rise when bond prices fall, soared on Thursday as a weekslong selloff intensified-- fueled by bets that the Federal Reserve will start raising interest rates earlier than...
Latin American currencies fell on Friday
spooked by rising U.S. Treasury yields, with Mexico's peso
hitting its lowest in more than three months, while upbeat
earnings from miner Vale lifted ...
- The selloff in U.S. Treasuries may finally give the bourses of Frankfurt, Paris or Milan a decisive edge for 2021 after five straight years of underperformance against Wall Street. What has changed from the previous years is that the 10-year U.S. yield, at roughly 1.5%, now matches the dividend yield of the S&P 500.
An overnight jump in U.S. Treasury yields showed some signs of subsiding in cautious European trading on Friday, thanks to a broader retreat in euro zone yields, but worries about rising inflation expectations weighed on sentiment. Benchmark 10-year U.S. borrowing costs rose to their highest in a year at 1.614% overnight, rocking stock markets.
* Euro zone yields fall, follow U.S. Treasuries lower. * German 10-year yield has shot up 25 bps in February. * ECB intervention likely if yields rise further -analysts. * Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr. By Tommy Wilkes.
* Pound falls to over one-week low. * Bitcoin slips 5% * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E. By Ritvik Carvalho. The U.S. dollar rose against most major currencies on Friday, lifted by an increase in U.S. bond yields overnight, while the pound dropped to its lowest in over a week. Government bonds, and particularly U.S. Treasuries, have become the focal point of markets globally.
* Stocks in Taiwan, HK, India slide over 3% * MSCI's EM index hits 4-week low, down ~6% this week. * Rise U.S. Treasury yields benign for EM assets - Barclays. * S. African rand jumps 1.2%, Turkey's lira steadies after slide. By Susan Mathew.
* Euro zone yields fall, follow U.S. treasuries lower. * German 10-year yield has shot up 27 bps in Feb. * Analysts say ECB intervention likely if yields rise further. * Euro zone periphery govt bond yields http://tmsnrt.rs/2ii2Bqr. By Tommy Wilkes.
A sharp jump in U.S. Treasury yields this week has bond managers talking about a "tantrum", worrying about extreme moves and pockets of poor liquidity in the $20 trillion market. The selloff in U.S. Treasury bonds, which pushes prices down and yields up, has gathered steam in recent weeks due to rising expectations for economic growth - and fears inflation could spike if the economy overheats.
International stocks dropped Friday, tracking declines in U.S. indexes, as a selloff in bonds helped dent investor appetite for richly valued shares. Treasury notes rose in price, regaining some of the previous session's losses, and futures suggested stocks in New York could stabilize or gain slightly in Friday trading. Investors said the market had been reassessing prospects for interest-rate increases by the U.S.
* Wall Street tumbles as inflation fears nag. * Nasdaq in biggest one-day decline in four months. * Oil prices settle up. * Reuters Live Markets blog: By Echo Wang. Asian stocks opened sharply lower on Friday after Wall Street's main indexes tumbled, with technology-related stocks under pressure following a steep rise in benchmark U.S. Treasury yields.
The Dow Jones Industrial Average tumbled more than 550 points Thursday as a wave of selling that began in the technology sector took down swaths of the market. Stocks' momentum has faltered the past week as investors have faced a sharp and swift rise in bond yields. The yield on the benchmark 10- year Treasury note marked its biggest one-day advance since November and settled at its highest level in a year.
Municipal bond yields were following U.S. Treasury yields higher after valuations between the two markets reached unsustainable levels, analysts said on Thursday.
Benchmark U.S. Treasury yields vaulted to
their highest since the pandemic began on Thursday as the week's
sell-off in bonds on rising economic expectations and inflation
concerns continued, ...
* U.S. 10-year Treasury yield rises above S&P 500 div yield. * Nasdaq posts largest daily fall since late October. * Weekly jobless claims decline. By Gertrude Chavez-Dreyfuss. Wall Street's main indexes tumbled on Thursday, with the Nasdaq index posting its largest daily percentage fall in four months, as technology-related stocks remained under pressure following a rise in U.S. bond yields.
A wave of selling in U.S. government bonds intensified on Thursday, sending yields soaring after new data indicated a strengthening economic recovery and an auction of seven-year Treasurys met with tepid demand from investors. The yield on the benchmark 10- year Treasury note reached as high as 1.539% before finishing Thursday's session at 1.513%, according to Tradeweb-- its highest level in a year and up from 1.388% at Wednesday's close. Moves were also pronounced in...
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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