Prospective Federal Reserve Chair Kevin Warsh disclosed on Tuesday his initial round of asset divestitures ahead of being sworn in as central bank leader. The funds listed by Warsh detailed names of the holdings but not the sizes of the sales, nor who bought the assets.
Prospective Federal Reserve Chair Kevin Warsh disclosed on Tuesday his initial round of asset divestitures ahead of being sworn in as central bank leader.
Yields on longer-dated Treasuries climbed to new highs on Tuesday amid a global market selloff in longer-dated bonds driven by war-related inflation concerns. The 30-year Treasury bond's yield, which is seen as a barometer of political risk, climbed on Tuesday to 5.197%, its highest in 19 years.
The Federal Reserve will respond as needed with its monetary policy operations to any changes in how the Treasury Department manages a large account of cash currently parked at the central bank, Roberto Perli, the Federal Reserve Bank of New York official responsible for implementing monetary policy, said Tuesday.
* Benchmark 10-year Treasury yields near a more than one-year high. * Brent crude oil prices hold above $110 a barrel. * Minutes of Fed's April policy meeting due on Wednesday. By Anjana Anil. Gold prices fell by more than 2% on Tuesday on a firmer U.S. dollar and as persistent inflation fears kept interest rate hike expectations and Treasury yields high.
A Federal Reserve Bank of New York official responsible for implementing monetary policy said on Tuesday that the central bank's current rate control toolkit would still work in a system allowing banks to hold fewer reserves. New York Fed System Open Market Account Manager Roberto Perli also said the pace of future Treasury bill buying will be determined by market conditions.
* TSX down 0.1% * Canada's annual inflation at 2.8% in April. By Tharuniyaa Lakshmi. Canada's main stock index edged lower on Tuesday in choppy trade, weighed by high Treasury yields, while investors parsed fresh data that showed domestic inflation rose in April. At 10:39 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was down 0.1% at 33,795.69 points.
* Indexes down: Dow 0.5%, S&P 500 0.6%, Nasdaq 0.8% * Akamai Technologies (AKAM) down after announcing senior notes offering. * Software stocks among top gainers. By Ragini Mathur and Utkarsh Hathi. Wall Street's main indexes fell on Tuesday, pressured by consumer discretionary stocks and renewed inflation worries as the 10-year Treasury yield climbed to its highest level in more than a year.
Brazil's central bank governor Gabriel Galipolo said on Tuesday that the country's heavy reliance on sovereign debt linked to the benchmark interest rate Selic weakens monetary policy transmission, as higher borrowing costs end up boosting disposable income for bondholders.
* Benchmark 10-year Treasury yields near a more than one-year high. * Brent crude oil prices hold above $110 a barrel. * Minutes of Fed's April policy meeting due on Wednesday. By Anjana Anil. Gold prices fell by more than 2% on Tuesday as a firmer U.S. dollar and persistent inflation fears kept interest rate hike expectations and Treasury yields high.
Brazil's central bank governor Gabriel Galipolo said on Tuesday the economy is set to face two supply shocks - higher oil prices and the risk of a very strong El Nino - at a time of elevated inflation. Speaking at a Senate hearing, Galipolo said the average of core inflation measures is currently running at the same level as headline inflation, both above the official 3% target.
Chile's central bank warned that an abrupt tightening of global financing conditions - potentially triggered by an escalation of the Middle East conflict - represents the main risk to local financial stability.
The S&P 500 and the Nasdaq opened lower on Tuesday, pressured by a selloff in heavyweight chip stocks and lingering inflation concerns as Treasury yields continued to rise.
The S&P 500 and the Nasdaq opened lower on Tuesday, pressured by a selloff in heavyweight chip stocks and lingering inflation concerns as Treasury yields continued to rise.
Brazil's central bank will not provide forward guidance on monetary policy decisions amid uncertainty stemming from the Middle East conflict, monetary policy director Nilton David said on Tuesday.
Yields on U.S. Treasuries ticked higher in Tuesday morning trading after an earlier dip following an overnight pause in the Iran conflict and a decline in oil prices. The yield on the benchmark 10-year Treasury note was last up 4.2 basis point at 4.627%. It had climbed as high as 4.659% on Monday, which was its highest level in 15 months.
Yields on U.S. Treasuries ticked lower in early Tuesday trading after another overnight pause in the Iran conflict and a dip in oil prices. The yield on the benchmark 10-year Treasury note was last down less than a basis point at 4.617%. It had climbed as high as 4.659% on Monday, which was its highest level in 15 months.
Brazil's central bank monetary policy director Nilton David said on Tuesday the bank is troubled by inflation expectations drifting further from its 3% target - particularly for 2028, a horizon expected to be less sensitive to current shocks.
The U.S. Federal Reserve will avoid cutting interest rates this year, according to most economists polled by Reuters who largely pushed long-held calls for reductions into next year on hopes the current inflation flare-up is temporary.
* Investors focus on potential increases to U.S. interest rates. * Oil prices fall after Trump remarks lift peace hopes. * Yen returns to intervention zone close to 160. By Stefano Rebaudo.
Euro zone bonds weakened on Tuesday, with yields just shy of multi-year highs hit the previous day when investors braced for a sustained period of high energy prices that could spill over into broader inflation and cause central bank rate hikes.
Incoming Federal Reserve Chair Kevin Warsh's suggestion that independence may not extend fully to the Fed's crisis-fighting role abroad has unsettled central banking peers, who fear any reduction in its global footprint could risk market stability.
U.S. Trade Representative Jamieson Greer will host a meeting of G20 trade ministers in Wisconsin from September 30 to October 1, his office said, with talks to focus on forced labor, updating the Most-Favored Nation principle and global overcapacity. President Donald Trump is scheduled to host the G20 leaders' summit in Miami on December 14-15 at Trump National Doral.
Wall Street's main indexes fell on Tuesday, pressured by technology and consumer discretionary stocks, as mounting inflation concerns sent the benchmark 10-year Treasury yield to its highest level in more than a year.
It looks like the bond market is betting a Federal Reserve rate increase could be on the way -- but Fed members and economists mostly don't seem to think so.
* Trump says "good chance" of nuclear deal with Iran. * Traders see 38% chance of a US interest rate hike this year. * Minutes of Fed's April policy meeting due on Wednesday. By Noel John. Gold prices fell on Tuesday, hovering near a one-and-a-half-month low hit in the previous session, pressured by inflation fears and expectations of higher U.S. interest rates.
* Investors focus on chances of Fed rate hikes. * Oil drops after Trump remarks lift peace hopes. * Yen returns to intervention zone close to 160. By Stefano Rebaudo. The U.S. dollar rose on Tuesday as investors balanced cautious hopes for a Middle East peace deal against concerns that the Federal Reserve could raise rates to curb energy-driven inflation.
Incoming Federal Reserve chair Kevin Warsh faces both a tough environment and a "difficult boss," Standard Chartered CEO Bill Winters said on Tuesday, pointing to political pressure on Warsh to cut rates even as inflation remains high.
Incoming Federal Reserve chair Kevin Warsh faces both a tough environment and a "difficult boss," Standard Chartered CEO Bill Winters said on Tuesday, pointing to political pressure on Warsh to cut rates even as inflation remains high.
Financial market turbulence could force the Bank of Japan to go slow on the unwinding of its massive debt holdings, giving anxious bond investors some relief as surging yields lay bare worsening fiscal strains and inflation pressures.
Euro zone bonds steadied on Tuesday, with yields just shy of multi-year highs hit the previous day when investors braced for a sustained period of high energy prices that could spill over into broader inflation and cause central bank rate hikes.
Investors may now be discovering what long-term government borrowing costs are really like when you remove the potential backstop of central bank intervention from the bond market. The main driver of surging U.S. long-bond borrowing rates this year is clear enough: the Iran war, the related oil shock, racing inflation and the inevitable speculation about interest-rate rises.
Japanese government bond prices slipped on Tuesday, erasing early gains, as investors awaited details of the government's planned extra budget and the Bank of Japan's upcoming policy decision.
The latest sharp selloff in U.S. Treasuries may be far from over. A combination of stubborn inflation, shifting expectations about interest rates, and changes in investor behavior could keep pressure on bond prices and drive yields even higher in the weeks ahead, analysts said.
China is expected to leave its benchmark lending rates unchanged for a 12th consecutive month in May, a Reuters survey showed, as ample interbank cash supplies reduced the need to cut rates despite weak economic and lending activities.
* Q1 real GDP grows annualised 2.1% vs forecast +1.7% * Consumption and capex both rise 0.3%, GDP data shows. * Net external demand adds 0.3 point to growth. * Analysts expect slowdown ahead as Iran war impact intensifies. By Leika Kihara.
The U.S. dollar strengthened on Tuesday as investors focused on a possible hawkish shift by the Federal Reserve to curb energy-driven inflation, while uncertainty over a potential peace deal in the Middle East also weighed on sentiment. U.S. President Donald Trump said on Monday there was now a "very good chance" of reaching a deal limiting Iran's nuclear programme.
Japan's economy grew an annualised 2.1% in the first quarter, government data showed on Tuesday, compared with the median market forecast for a 1.7% gain. The growth in gross domestic product translated into a quarterly increase of 0.5%, which compared with the median estimate for a 0.4% rise.
Australia's central bank is worried higher energy costs will feed through to consumer prices quickly given the stretched state of the domestic economy, potentially creating a significant shift in inflation expectations.
Japan stands ready to act against excessive foreign exchange volatility at any time, while ensuring that any yen-buying, dollar-selling intervention is conducted in a way that avoids pushing up U.S. Treasury yields, officials said on Monday.
* S&P 500, Nasdaq end lower. * Oil prices gain as Iran worries continue. * Longer-dated US Treasury yields off recent highs. By Caroline Valetkevitch and Samuel Indyk. Major stock indexes mostly eased as technology shares fell on Monday, while Brent oil prices climbed to a two-week high as investors assessed whether there will likely be progress soon to end the Iran war.
* S&P 500, Nasdaq end lower. * Oil prices gain as Iran worries continue. * Longer-dated U.S. Treasury yields off recent highs. By Caroline Valetkevitch and Samuel Indyk. Major stock indexes mostly eased as technology shares fell on Monday, while oil prices climbed following continued worries over supply disruption from the Iran war.
* Indexes mixed with Nasdaq leading declines, Dow holding steady. * Dominion Energy (D) rises on NextEra deal. * Regeneron slides after skin cancer drug combo misses trial goal. By Sin?ad Carew and Ragini Mathur.
* Yield on 10-, 30-year Treasuries retreat from overnight highs. * Earlier sharp sell-off followed a rise in crude oil prices. * Market bets on Fed interest rate hike increase. By Matt Tracy.
* Oil prices rise, reversing earlier dip. * Fed policy expectations shift as investors assess Chair Kevin Warsh's response to inflation. * Japanese yen weakens as government considers new debt. By Karen Brettell.
Veterans from the U.S. Federal Reserve's past crisis-fighting efforts on Monday said incoming Chair Kevin Warsh should focus less on the central bank's balance-sheet size and more on guidelines for how to use it in response to future financial and economic shocks.
* Indexes off: Dow 0.01%, S&P 500 off 0.43%, Nasdaq down 0.89% * Dominion Energy (D) rises on NextEra deal. * Regeneron slides after skin cancer drug combo misses trial goal. By Sin?ad Carew and Ragini Mathur.
Kevin Warsh will be sworn in as U.S. Federal Reserve chief on Friday by President Donald Trump, a White House official said on Monday, capping off the process of installing the 56-year-old lawyer and financier at the helm of the central bank as it grapples with intensifying inflation that may make it hard to push through the interest-rate cuts Trump so deeply desires.
* U.S. stock indexes mostly down slightly. * Oil prices gain as Iran worries continue. * Longer-dated U.S. Treasury yields off recent highs. By Caroline Valetkevitch and Samuel Indyk. Major stock indexes mostly eased as technology shares fell on Monday, while oil prices climbed following more worries over supply disruption from the Iran war.
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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