Short-dated U.S. Treasury yields jumped to a fresh 3-1/2-month high on Tuesday as investors priced in the possibility of higher rates from U.S. President-elect Donald Trump's proposed policies on taxes and trade tariffs. The bond market had been closed for a holiday the day before.
Japanese government bond yields inched up on Tuesday, tracking a rise in U.S. Treasury yields during Asian hours, as investors awaited fresh signals on the outlooks for the United States and Japan. The 10-year JGB yield rose 0.5 basis point to 1%, where it has hovered this week, while 10-year JGB futures fell 0.05 points to 143.6 yen.
Japan's 10-year government bond yield was unchanged on Monday, after U.S. Treasury yields fell last week. The 10-year JGB yield was flat at 1% after crossing that level for the first time in three months on Thursday. "The 10-year bond yield seems to be capped at 1%. If the yield surpasses that level, investors buy the bonds," said Gen Taniguchi, market analyst at Mizuho Securities.
* US 10-year, 30-year yields post largest weekly drop in 2 months. * US 2/10 yield curve hits flattest level in a month. * US one-year inflation expectations inch higher in November. * US rate futures price in one cut in December, two in 2025. By Gertrude Chavez-Dreyfuss, Alden Bentley.
Speculators' net bearish
bets on U.S. two- and five-year Treasury note futures hit new
record highs in the week ending Nov. 5, according to Commodity
Futures Trading Commission data released on ...
Speculators' net bearish bets on U.S. two- and five-year Treasury note futures hit new record highs in the week ending Nov. 5, according to Commodity Futures Trading Commission data released on Friday. Short positions on two-year Treasury futures rose to 1,486,359 contracts, according to the CFTC's latest Commitments of Traders data, up from 1,479,361 contracts a week earlier.
* China unveils steps to tackle 'hidden' debt of local governments. * Treasury yields sag as Fed signals careful, patient easing path. * Wall St hits record high again; world stocks up 3% this week. By Dhara Ranasinghe and Koh Gui Qing.
* China unveils steps to tackle 'hidden' debt of local governments. * Treasury yields sag as Fed signals careful, patient easing path. * Wall St hits record high again; world stocks up 3% this week. By Dhara Ranasinghe and Koh Gui Qing.
U.S. Treasury yields eased early Friday in the wake of the Federal Reserve's quarter point easing on Thursday, while profit taking on "Trump trade" bets leading up to Tuesday's decisive victory for the former president put a bid under U.S. government debt.
Euro zone bond yields moved lower on Friday, at the end of a busy period in which the market had to digest major central bank meetings, the U.S. election and the collapse of the German government, and which has left them near flat on the week.
* China unveils steps to tackle 'hidden' debt of local governments. * Treasury yields sag as Fed signals careful, patient easing path. * World stocks up 3% this week. By Dhara Ranasinghe.
Euro zone bond yields moved lower on Friday, at the end of a busy period in which they had to digest major central bank meetings, the U.S. election and the collapse of the German government, and which has left them near flat on the week.
* China unveils steps to tackle 'hidden' debt of local governments. * Treasury yields sag as Fed signals careful, patient easing path. * Global stocks hit all-time high after records on Wall Street. By Dhara Ranasinghe and Kevin Buckland.
* Chinese officials hold briefing Friday after week-long meeting. * Treasury yields sag as Fed signals careful, patient easing path. * Global stocks hit all-time high after records on Wall Street. By Kevin Buckland.
The U.S. S&P 500 zoomed past 6,000 points on Friday to a new record while Treasury yields retreated, as investors again cheered Donald Trump's decisive victory, although disappointment about China's latest fiscal support dampened the mood elsewhere.
* Fed's Powell says won't "guess" Trump policies. * US Treasury yields, dollar pulled back from multi-month peaks. * S&P 500, Nasdaq pushed to all-time highs, Dow held steady. * World equities index at record peak, on track for 3.3% weekly advance. * Chinese equities buoyant as stimulus hopes counter Trump tariff threat. By Kevin Buckland.
The recent surge in U.S. Treasury yields has less to do with a concern in the bond market over inflation risks arising from an aggressive fiscal agenda from President-elect Donald Trump than they do about expectations for stronger growth ahead, Federal Reserve Chair Jerome Powell said on Thursday, but central bank officials will keep a close eye for any change in that dynamic.
Shares on Wall Street scaled record highs on Thursday, lifting stock markets around the world, while U.S. Treasury yields retreated further after the Federal Reserve cut interest rates and as investors processed a second Donald Trump presidency.
* * US rate futures price in another 25-bp cut next month. * Analyst questions need to cut if risks are in balance. * Fed's Powell says no plan to raise interest rates. * Fed's Powell says election has no near-term policy impact. By Gertrude Chavez-Dreyfuss.
U.S. Treasury yields trimmed losses on Thursday after the Federal Reserve cut interest rates by 25 basis points, as widely expected, amid a cooling labor market, while noting that economic growth remained solid. "Economic activity has continued to expand at a solid pace," the central bank's rate-setting Federal Open Market Committee said at the end of a two-day policy meeting.
* Major US stock indices hit record highs, Stoxx 600 up 0.8% * Chinese shares gain 3% on stimulus hopes. * German politics also in focus, German yields rise. * 10-year Treasury yield retreat before Fed's rate decision. * British, Swedish central banks cut rates, Norway holds as expected. * Fed meeting still to come. By Koh Gui Qing and Kevin Buckland.
World stocks gained on Thursday after a record rise for U.S. shares overnight, and U.S. Treasuries remained under pressure as investors processed a second Donald Trump presidency, ahead of policy decisions from the Fed and other major central banks.
Shares on Wall Street scaled record highs on Thursday, lifting stock markets around the world, while U.S. Treasury yields retreated further after the Federal Reserve cut interest rates and as investors processed a second Donald Trump presidency.
Donald Trump's victory in the U.S. presidential election unleashed a massive rally in the dollar, drove stocks to record highs and punished bond prices as expectations of tax cuts and tariffs on imports drove optimism about economic growth while fueling worries about inflation.
* Major stock indexes on Wall St hit record highs; Tesla jumps. * Dollar climbs, euro down 2% * Treasury yields surge as 30-year yield rises as much as 20 bps. * Mexican peso hits two-year low. By Koh Gui Qing and Dhara Ranasinghe.
Donald Trump's victory in the U.S. presidential election unleashed a massive rally in the dollar, fueled a rally on Wall Street and punished bond prices as expectations of tax cuts and tariffs on imports drove optimism about economic growth along with worries about inflation.
* Trump elected US president in stunning comeback. * Major stock indices on Wall St jump to record highs. * Dollar climbs, euro down 2% * Treasury yields surge as 30 year yield rises as much as 20 bps. * Mexican peso hits two-year low. By Koh Gui Qing and Dhara Ranasinghe.
* Longer-dated U.S. bond yields surge. * Trump win seen widening deficits. * Tariff plans could also increase inflation. * US yield curve hits steepest since late September. * Focus shifts to Fed meeting. By Harry Robertson and Gertrude Chavez-Dreyfuss.
* Tesla rises almost 15% * Mexican peso drops. * Bitcoin roars to record. * Dow, S&P and Nasdaq surge to record highs. * Big gains in small caps, bank shares. By Lewis Krauskopf and Amanda Cooper.
U.S. Treasuries fell sharply on Wednesday, propelling yields to multi-month highs as Donald Trump's presidential election victory ignited bets on economic policy shifts that could boost deficits and inflation.
* Longer-dated U.S. bond yields surge. * Trump win seen widening deficits. * Tariff plans could also increase inflation. By Harry Robertson and Rae Wee. U.S. Treasuries fell sharply on Wednesday, sending yields surging, as Donald Trump's election victory stoked bets on economic policy shifts that could boost deficits and inflation.
* Trump elected US president in stunning comeback. * Dollar climbs, Treasury yields hit four-month highs. * U.S. stock futures jump, European stocks rally. * Mexican peso hits two-year low. By Dhara Ranasinghe.
Donald Trump's victory in the U.S. presidential election unleashed a massive rally in the dollar, drove stocks to record highs and punished bond prices as expectations of tax cuts and tariffs on imports drove optimism about economic growth while fueling worries about inflation.
* Longer-dated U.S. bond yields surge. * Likely Trump win seen widening deficits. * Tariff plans could also increase inflation. By Rae Wee and Harry Robertson. U.S. Treasuries dropped on Wednesday, sending yields surging, as Donald Trump stood on the cusp of a second presidency that could usher in tax cuts and tariff hikes that boost the deficit and inflation.
* Asian stock markets : https://tmsnrt.rs/2zpUAr4. * Dollar climbs, Treasury yields hit four-month highs. * U.S. stock futures jump, European futures higher too. * Trump claims victory after Fox News projects he has won US presidency. By Dhara Ranasinghe and Wayne Cole.
* Asian stock markets : https://tmsnrt.rs/2zpUAr4. * Dollar climbs, Treasury yields hit four-month highs. * Election results still close, but favour Trump. * U.S. stock futures jump, European futures fall. By Wayne Cole.
* Asian stock markets : https://tmsnrt.rs/2zpUAr4. * Dollar climbs, Treasury yields hit four-month highs. * Election results still close, but favour Trump. * U.S. stock futures jump, European futures follow. By Wayne Cole.
* Asian stock markets : https://tmsnrt.rs/2zpUAr4. * Dollar climbs, Treasury yields hit four-month highs. * Election results mixed, betting sites favour Trump. * U.S. stock futures jump, European futures follow. By Wayne Cole.
Wall Street tore to record highs on Wednesday and major stock markets around the world surged, while bitcoin hit an all-time-high and the dollar was set for its biggest one-day jump in four years after Donald Trump was elected U.S. president.
* Dollar and bonds set to react to US vote. * VIX 'fear index' at low ebb. * USD/CNH implied volatility near record high. By Koh Gui Qing, Lawrence White. World stocks rose and Treasury yields retreated from early highs on Tuesday as markets awaited early indications of the outcome of a knife-edge U.S. presidential election, with only currency markets showing some jitters.
* Dollar and bonds set to react to US vote. * VIX 'fear index' at low ebb. * USD/CNH implied volatility near record high. By Koh Gui Qing and Lawrence White.
* Stocks, Treasury yields rise ahead of tight US election. * Dollar and bonds set to react to US vote. * VIX 'fear index' at low ebb. * USD/CNH implied volatility near record high. By Koh Gui Qing and Lawrence White.
* Higher fiscal deficit seen regardless of which candidate wins. * US services index rises, help extend gains in Treasury yields. * US yield curve steepens slightly. * US Treasury to sell $42 billion in 10-year notes. By Gertrude Chavez-Dreyfuss.
Japanese government bond yield edged down on Tuesday, tracking U.S. Treasury yields lower in the previous session, as market participants awaited the results of the U.S. presidential election.
World stocks rose and Treasury yields retreated from early highs on Tuesday as markets awaited early indications of the outcome of a knife-edge U.S. presidential election, with only currency markets showing some jitters.
* Wall Street notches slim gains ahead of Tuesday's US election. * European shares flat. * Treasury yields fall as investors temper Trump victory trade. * Dollar falls as Kamala Harris takes lead in Iowa poll. * Markets also eye Fed rate review, China NPC meet. * Oil rises on OPEC+ output hike delay. By Koh Gui Qing and Tom Wilson.
* Iowa poll shows Harris ahead of Trump, weighs on yields. * US 10-year yields on track for largest fall since early Sept. 4. * US two-year yields show biggest decline in three weeks. * US 2/10 yield curve bull flattens. * US Treasury three-year notes auction show weak results. By Gertrude Chavez-Dreyfuss.
* Wall St notches slim gains ahead of Tuesday's US election. * European shares flat. * Treasury yields fall as investors temper Trump victory trade. * Dollar falls as Kamala Harris takes lead in Iowa poll. * Markets also eye Fed rate review, China NPC meet. * Oil rises on OPEC+ output hike delay. By Koh Gui Qing and Tom Wilson.
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.