Extreme bond market agitation has put the Federal Reserve in a bind. It can't do both and will likely opt to tackle the former, potentially setting up a running verbal battle with the White House over the coming year. The surge in U.S. Treasury borrowing rates in the first weeks of 2025 can no longer be dismissed as just natural ebb and flow around the latest economic updates.
* Ten-year Treasury yields ease from multi-month highs in holiday-shortened session. * Analysts point to UK economic woes, Trump uncertainty for bond rout. * Stocks sold into US holiday Thursday; crucial jobs report on Friday. By Kevin Buckland and Chibuike Oguh.
* US 10-yr Treasury yields hit highest since April. * UK 10-yr gilt yields at highest since 2008. * Bonds selloff ripples into currencies, stocks. By Amanda Cooper, Yoruk Bahceli and Gertrude Chavez-Dreyfuss.
* Ten-year Treasury yields ease from multi-month highs in holiday-shortened session. * Analysts point to UK economic woes, Trump uncertainty for bond rout. * Stocks sold into US holiday Thursday; crucial jobs report on Friday. By Kevin Buckland and Chibuike Oguh.
The U.S. dollar strengthened for a third straight session on Thursday as Treasury yields dipped but held at elevated levels on concerns over tariffs under the incoming Trump administration, while sterling's recent weakness persisted.
U.S. Treasury yields retreated from an eight-month high on Thursday while the dollar strengthened against major currencies, as investors reevaluated the Federal Reserve's interest rate policy for 2025 as the U.S. economy shows signs of resilience. The benchmark 10-year U.S. Treasury yield fell 0.45 basis points to 4.689%. It had hit a peak of 4.73% on Wednesday, the highest since April 2024.
* S&P 500 and Dow finish higher in choppy trading. * Benchmark 10-year yields rise. * Oil prices shed 1% * U.S. dollar index gains. By Chibuike Oguh, Alun John. A selloff in global bonds continued on Wednesday, pressuring Wall Street stocks and boosting the dollar as signs of continuing strength in the U.S. economy dimmed expectations for aggressive near-term interest rate cuts.
* S&P 500 and Dow finish higher in choppy trading. * Benchmark 10-year yields rise. * Oil prices shed 1% * U.S. dollar index gains. By Chibuike Oguh and Alun John.
- U.S. corporate debt markets continued to be peppered by new bond offerings on Wednesday as rising Treasury yields increased demand for debt and pushed companies to get their funding done now before any further increase in borrowing costs.
* S&P 500 flat, Nasdaq edge lower in choppy trading. * US jobs reports show mixed picture ahead of Friday's payrolls. * Benchmark 10-year yields rise. * Oil prices shed 1% By Chibuike Oguh and Alun John.
Benchmark 10-year yields hit a more than eight-month high on Wednesday on concerns that policies introduced by the Donald Trump administration could reignite inflation in addition to boosting growth, leading to fewer Federal Reserve rate cuts.
U.S. corporate debt markets continued to be peppered by new bond offerings on Wednesday as rising Treasury yields increased demand for debt and pushed companies to get their funding done now before any further increase in borrowing costs.
SoundHound AI Inc.?s shares are trading lower Wednesday potentially from continued momentum due to sector-wide challenges. What To Know: The broader tech selloff follows NVIDIA Inc.?s mixed reception at CES 2025 and rising treasury yields on Tuesday. Economic data may have also added to the decline.
* Canadian dollar dips 0.2% against the greenback. * Trades in a range of 1.4340 to 1.4409. * Price of U.S. oil decreases 1.4% * 10-year yield touches a 6-week high at 3.384% By Fergal Smith. The Canadian dollar edged lower against its U.S. counterpart on Wednesday as U.S. Treasury yields climbed and investors grew more worried about the threat of American trade tariffs.
* Wall Street stocks edge lower in choppy trading. * US jobs reports show mixed picture ahead of Friday's payrolls. * Benchmark 10-year yields rise. * Oil prices shed 1% By Chibuike Oguh and Alun John.
Longer-term U.S. Treasury yields have surged to multi-month highs, outpacing a rise in shorter-dated yields, with some of the disparity reflecting anticipation that the incoming Trump administration will need to change the current focus on relying more on short-term debt, traders say.
* US 10-yr Treasury yields hit highest since April. * UK 10-yr gilt yields at highest since 2008. * Bonds selloff ripples into currencies, stocks. By Amanda Cooper, Yoruk Bahceli and Gertrude Chavez-Dreyfuss.
Longer-term U.S. Treasury yields have surged to multi-month highs, outpacing a rise in shorter-dated yields, with some of the disparity reflecting anticipation that the incoming Trump administration will need to change the current focus on relying more on short-term debt, traders say.
The U.S. dollar extended its rally to a 14-month high and Treasury yields continued their relentless rise on Wednesday as speculation grew that President-elect Donald Trump is considering invoking sweeping emergency powers to implement new tariffs, fueling fears of inflation and policy uncertainty.
* US jobs reports show mixed picture ahead of Friday's payrolls. * S&P 500, Nasdaq and Dow Jones all open in red. * European shares fall. * New US tariff report also in mix. * UK assets underperform - gilts, stocks, pound all fall. By Alun John.
* US 10-yr Treasury yields at highest since April. * UK 10-yr gilt yields at highest since 2008. * Bonds selloff ripples into currencies, stocks. By Amanda Cooper and Yoruk Bahceli.
* Traders reduce bets on U.S. rate cuts in 2025. * US inflation worries resurface before Friday's payrolls data. * New tariff report also in mix. * European shares fall, U.S. futures down 0.35% * British assets underperform, gilts, stocks pound all sell off. * By Alun John.
Sterling slid for a second day on Wednesday against a generally firmer U.S. dollar, despite British borrowing costs sitting at around their highest in 27 years. Solid U.S. data on Tuesday confirmed investors' view that U.S. interest rates will stay higher for longer, pushing up Treasury yields and boosting the dollar against most major currencies.
A look at the day ahead in U.S. and global markets from Mike Dolan. Dragging up government borrowing costs across the world, the new year spike in long-term U.S. Treasury yields is flashing red as a long-absent risk premium in debt markets re-builds alarmingly amid fiscal policy and interest rate fears.
A look at the day ahead in U.S. and global markets from Mike Dolan Dragging up government borrowing costs across the world, the new year spike in long-term U.S. Treasury yields is flashing red as a long-absent risk premium in debt markets re-builds alarmingly amid fiscal policy and interest rate fears.
Japanese government bond yields rose to multi-year highs on Wednesday, pulled by climbing U.S. Treasury yields after robust economic data pointed to a slower pace of interest rate easing by the Federal Reserve. The 10-year JGB yield rose 3 basis points to 1.170% as of 0529 GMT, after earlier hitting 1.175% for the first time since July 2011.
A look at the day ahead in European and global markets from Ankur Banerjee. The dollar stood tall on Wednesday boosted by elevated Treasury yields after strong U.S. data rekindled worries of a rebound in inflation, leaving European stocks staring at a weak open as traders brace for diverging policy paths.
A look at the day ahead in European and global markets from Ankur Banerjee. The dollar stood tall on Wednesday boosted by elevated Treasury yields after strong U.S. data rekindled worries of a rebound in inflation, leaving European stocks staring at a weak open as traders brace for diverging policy paths.
A selloff in global bonds continued on Wednesday, pressuring Wall Street stocks and boosting the dollar as signs of continuing strength in the U.S. economy dimmed expectations for aggressive near-term interest rate cuts. The benchmark 10-year U.S. Treasury yield rose as high as 4.73%, a peak since April 2024, building on Tuesday's 7 basis point rise.
- A look at the day ahead in Asian markets. Investors go into Wednesday's market trading in Asia with their appetite for risk smothered by the rise in global bond yields. As ever, U.S. Treasury yields are front and center for markets that are more exposed than most to dollar-denominated debt and U.S. borrowing costs.
* Wall Street stocks finish lower. * European stocks rise for second-straight session. * Benchmark 10-year Treasury yields hit eight-month high. * US dollar index rises. * Oil prices settle higher. By Chibuike Oguh.
- A look at the day ahead in Asian markets. Investors go into Wednesday's market trading in Asia with their appetite for risk smothered by the rise in global bond yields. As ever, U.S. Treasury yields are front and center for markets that are more exposed than most to dollar-denominated debt and U.S. borrowing costs.
A look at the day ahead in Asian markets. As ever, U.S. Treasury yields are front and center for markets that are more exposed than most to dollar-denominated debt and U.S. borrowing costs. The 10-year U.S. yield is its highest in eight months, the '2s/10s' curve is the steepest in nearly three years, and the 30-year yield is within 10 basis points of 5.00%. It has climbed 60 bps in a month.
* US job openings grow, exceeding forecasts. * Market anticipates Fed rate cuts will be less than previously expected. * Fiscal trajectory has pushed up long-term yields. By Karen Brettell. Benchmark 10-year Treasury yields hit an eight-month high on Tuesday after better than expected data pointed to a strong economy and as the Treasury auctioned $39 billion of the notes to average demand.
Global stocks lost ground while U.S. Treasury yields edged higher on Tuesday after data showed the American economy remained resilient. U.S. services sector activity accelerated in December, beating expectations, while a measure of prices paid for inputs rose to near a two-year high, according to data from the Institute for Supply Management.
- U.S. companies rushed to the corporate bond markets on Monday as what is usually a seasonal fund-raising spree over the first few days of a new year gained extra momentum to get ahead of any further rise in Treasury yields - which would increase funding costs - after jobs data on Friday.
* Data drives investors to revise down further rate cut expectations. * US growth shows little sign of slowing. * US treasury yields rise. By Harry Robertson. U.S. stocks gave up earlier gains and the dollar and bond yields climbed on Tuesday after data showed the U.S. economy remained strong at the end of last year, potentially further limiting the scope for Federal Reserve rate cuts.
* Dollar rebounds from near one-week low. * * US non-farm payrolls report due on Friday. By Anjana Anil. Gold prices pared earlier gains on Tuesday, pressured by a strengthening dollar and Treasury yields after rising U.S. job openings signalled diminishing odds of large rate cuts by the Federal Reserve.
Global stocks lost ground while U.S. Treasury yields edged higher on Tuesday after data showed the American economy remained resilient, indicating the Federal Reserve could cut interest rates fewer times this year than the market had been expecting.
The benchmark 10-year Treasury yield hit the highest since May on Monday while the 30-year yield posted a 14-month high before the Treasury's auction of longer-dated debt over the next two days. Demand was soft for the Treasury's sale of $58 billion in three-year notes on Monday, leading to a. high yield. of 4.332%, more than a basis point above where they traded before the auction.
"These opportunities will surface periodically throughout the year against heavy supply and the increasingly uncertain path for the Fed, evolving fiscal policy, and volatile Treasury market backdrop," said J.P. Morgan strategists.
- U.S. companies rushed to the corporate bond markets on Monday as what is usually a seasonal fund-raising spree over the first few days of a new year gained extra momentum to get ahead of any further rise in Treasury yields - which would increase funding costs - after jobs data on Friday.
U.S. companies rushed to the corporate bond markets on Monday as what is usually a seasonal fund-raising spree over the first few days of a new year gained extra momentum to get ahead of any further rise in Treasury yields - which would increase funding costs - after jobs data on Friday.
* US non-farm payrolls report due on Friday. * US 10-year Treasury yields at over one-week high. * U.S. President-elect Donald Trump takes office on Jan. 20. By Anjana Anil.
* US monthly payrolls report due on Friday. * Goldman pushes back $3,000 per troy ounce gold forecast to 2026. By Anushree Mukherjee. Gold prices retreated on Monday as U.S. Treasury yields edged up, while investors' attention turned to economic data for clues on the Federal Reserve's interest rate trajectory in 2025. Spot gold fell 0.6% to $2,624.20 per ounce by 8:50 a.m. EST.
Japanese government bond yields rose to multi-year highs on Monday, the first trading day for 2025, tracking U.S. Treasury yields higher, with an auction in the next session weighing on sentiment. The 10-year JGB yield rose 3.5 basis points to 1.125%, its highest level since July 2011.
* U.S. stocks close higher; S&P, Nasdaq snap losing streak. * Dollar dips after four sessions of gains. * U.S. Treasury yields pare declines after manufacturing data. By Chuck Mikolajczak.
U.S. Treasury yields held steady near recent highs on Friday, ticking upward after encouraging manufacturing news but marking time in holiday-deadened trade before key employment data and a wave of note and bond issuance next week.
* * Dollar dips after four sessions of gains. * U.S. Treasury yields pare declines after manufacturing data. By Chuck Mikolajczak. Global stocks rallied on Friday but stayed on track for a weekly decline, while the dollar stalled after its recent rally but found some support from a stronger-than-expected U.S. manufacturing survey.
* * Dollar dips after four sessions of gains. * U.S. Treasury yields pare declines after manufacturing data. By Chuck Mikolajczak. A gauge of global stocks pushed higher on Friday but remained on track for a weekly decline, while the dollar tired after its recent rally but found support from a stronger than expected U.S. manufacturing survey.
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.