Wall Street indexes marched past previous record highs after global counterparts booked gains and longer-dated Treasury yields rose on Thursday as the start of the Federal Reserve's first interest rate cutting cycle in more than four years whet investors' risk appetite.
Japanese government bond yields rose on Thursday, tracking their U.S. peers higher, after the Federal Reserve delivered a larger-than-usual reduction in interest rates at the conclusion of its two-day meeting. The 10-year JGB yield was up 3 basis points at 0.85%, after briefly hitting 0.855% following an overnight rise in U.S. Treasury yields.
Major Wall Street indexes broke record highs after global counterparts booked gains and Treasury yields rose on Thursday as the start of the Federal Reserve's first rate-cutting cycle in more than four years whet investors' risk appetite.
Japanese government bond yields rose on Thursday, tracking their U.S. peers higher, after the Federal Reserve delivered a larger-than-usual reduction in interest rates at the conclusion of its two-day meeting. The 10-year JGB yield was up 2.5 basis points at 0.845%, as of 0105 GMT, after briefly touching 0.855% following an overnight rise in U.S. Treasury yields.
* Fed makes bumper 50 basis point cut. * US stock indexes jump then pare gains. * Dollar regains ground, Treasury yields rise. (Updates prices at 4:50 p.m. ET) By Isla Binnie.
* Steeper U.S. yield curve suggests more easing underway. * Fed forecasts show additional 50-bps easing this year. * Fed Chair Powell says will go fast or slow as appropriate. * Fed funds futures bet on 74 bps cuts by end-December. * U.S. 10-year yield posts best daily gain since August 21. By Gertrude Chavez-Dreyfuss.
- Foreign holdings of U.S. Treasuries rose to a record high in July, while Japan's U.S. government bond assets fell to the lowest since October, data from the Treasury Department showed on Wednesday. Holdings of U.S. Treasuries rose to $8.339 trillion in July from $8.211 trillion in June. Japan's Treasuries holdings decreased to $1.116 trillion from $1.118 trillion the previous month.
Foreign holdings of U.S. Treasuries rose to a record high in July, while Japan's U.S. government bond assets fell to the lowest since October, data from the Treasury Department showed on Wednesday. Holdings of U.S. Treasuries rose to $8.339 trillion in July from $8.211 trillion in June. Japan's Treasuries holdings decreased to $1.116 trillion from $1.118 trillion the previous month.
* Fed forecasts show addition 50 bps easing this year. * Fed wants to show it is in control -fund manager. * Fed Chair Powell says will go fast or slow as appropriate. By Gertrude Chavez-Dreyfuss.
* Fed makes bumper 50 bps cut. * U.S. stock indexes soar. * Dollar, 2-year Treasury yield falls. By Isla Binnie. Major stock indexes rose and the dollar dropped on Wednesday as traders digested a chunky interest rate cut from the Federal Reserve, which moved to lower borrowing costs in the world's largest economy for the first time in more than four years.
The U.S. Treasury yield curve on Wednesday reached its steepest level since July 2022, after the Federal Reserve cut interest rates by 50 basis points, a larger-than-usual rate reduction as the central bank grappled with a weakening labor market. The spread between U.S. two- and 10-year yields hit as wide as 10.2 bps and was last at 8.6 bps.
* Traders still debating odds of 50 bps or 25 bps Fed cut. * Robust U.S. retail sales briefly tipped scale toward 25 bps. * Dollar drops vs yen, but 2-year Treasury yield tick up. By Kevin Buckland and Sruthi Shankar.
* Traders still debating odds of 50 bps or 25 bps Fed cut. * Robust U.S. retail sales briefly tipped scale toward 25 bps. * Dollar drops vs yen, but 2-year Treasury yields tick up. * Most Asian stock indexes flat to lower amid uncertainty. By Kevin Buckland.
* Traders still debating odds of 50 bps or 25 bps Fed cut. * Robust U.S. retail sales briefly tipped scale toward 25 bps. * Dollar drops vs yen, but 2-year Treasury yields tick up. * Most Asian stocks weak, while Nikkei tracks yen gyrations. By Kevin Buckland.
* Wall Street closes little changed after early gains. * Treasury yields rise, dollar stands firm. * Fed meets on Wednesday, rate cut expected. * US retail sales, manufacturing production increase. By Isla Binnie.
* U.S. 10-year yield hits lowest since May 2023. * August retail sales surprise to upside. * U.S. 2/10 curve flattens to 5 bps. * 20-year note auction meets underwhelming demand. By Matt Tracy.
* Wall Street reverses some early gains. * Treasury yields rise, dollar stands firm. * Fed meets on Wednesday, rate cut expected. * U.S. retail sales, manufacturing production increase. By Isla Binnie.
* U.S. retail sales, manufacturing production rise. * Wall Street rises ahead of Fed decision. * Treasury yields rise. By Isla Binnie. U.S. stocks followed European peers higher and the dollar firmed on Tuesday, as unexpectedly strong economic data from Washington allayed slowdown fears a day before an expected interest rate cut by the Federal Reserve.
Asian stocks gained on Tuesday while the dollar and U.S. Treasury yields came under pressure, with just a day to go before the expected start of the Federal Reserve's easing cycle that could see policymakers deliver an outsized rate cut.
Asian stocks wobbled on Tuesday while the dollar and U.S. Treasury yields came under pressure, with just a day to go before the expected start of the Federal Reserve's easing cycle that could see policymakers deliver an outsized rate cut.
* 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.
* 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.
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.
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