Treasury yields bounce, easing worries about a global economic slowdown

Business

CNBC 09 July, 2021 - 03:01pm 26 views

What are Treasury yields?

Treasury yield is the return on investment, expressed as a percentage, on the U.S. government's debt obligations. ... Treasury yields also tell us how investors feel about the economy. InvestopediaTreasury Yield Definition

Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by Factset. Powered and implemented by FactSet Digital SolutionsLegal Statement. Mutual Fund and ETF data provided by Refinitiv Lipper.

This material may not be published, broadcast, rewritten, or redistributed. ©2021 FOX News Network, LLC. All rights reserved. FAQ - New Privacy Policy

Morgan Creek Capital Management CEO Mark Yusko provides insight into the bond market.

U.S. equity futures are trading higher following a day that saw stocks pull back from their recent record highs as bond yields fell and investors turned cautious.

The major futures indexes suggest a gain of 0.6% when the opening bell rings.

Stock are attempting a rebound after the S&P 500 fell 0.9% to 4,320.82, weighed down by a broad slide driven mainly in technology, financial, industrial and communication companies.

The Dow Jones Industrial Average lost 0.7% to 34,421.93. The Nasdaq composite snapped a three-day run of closing highs, sinking 0.7% to 14,559.78.

The yield on the 10-year Treasury note is back up to 1.33%. On Thursday it fell to 1.28%

Traders have been shifting money into bonds in recent weeks, pulling down the benchmark yield, which is used to set rates on mortgages and many other kinds of loans.

Investors are gauging the potential impact from COVID-19 variants stymying a resurgence in commerce and travel. Fans have been banned from the Tokyo Olympics following a state of emergency aimed at containing rising coronavirus infections in the capital.

On Friday, Tokyo's Nikkei 225 fell 0.6%, Hong Kong's Hang Seng index gained 0.7% and China's Shanghai Composite index lost 0.1%.

In Europe, London's FTSE added 0.7%, Germany's DAX gained 0.9% and France's CAC jumped 1.7%.

Two recent reports showed that the manufacturing and services sectors are still growing in the U.S,, but more slowly than in previous months and below economists’ expectations.

On Thursday, the Labor Department said the number of Americans filing for unemployment benefits rose slightly last week even while the economy and the job market appear to be rebounding from the coronavirus recession.

Investors are increasingly jittery over potential moves by central banks, especially the U.S. Federal Reserve, to wind down lavish support for markets that cratered at the outset of the pandemic.

Minutes from the Fed's June meeting showed officials are moving closer to reducing bond purchases, though most analysts don’t expect a reduction until late this year. At that meeting, policymakers said they planned to raise interest rates as soon as 2023, earlier than previously expected.

In energy markets, U.S. crude is gaining 77 cents to $73.72 per barrel. Brent crude is higher by 61 cents to $74.73.

This material may not be published, broadcast, rewritten, or redistributed. ©2021 FOX News Network, LLC. All rights reserved. FAQ - New Privacy Policy

Read full article at CNBC

Bond Rally Spreads to Shorter-Term Treasurys

The Wall Street Journal 09 July, 2021 - 10:20am

In recent trading, the yield on the benchmark 10-year U.S. Treasury note was 1.293%, according to Tradeweb, compared with 1.321% Wednesday and 1.479% one week ago.

Yields, which fall when bond prices rise, have trended lower for months but have accelerated their declines in recent days, creating their own momentum as more investors unwind bets on higher yields.

While many investors still expect strong economic growth and inflation over the coming months, recent developments have caused some to question their most optimistic forecasts. The result has been a domino effect, according to investors and analysts, with the rally steadily sweeping up more and more holdouts who might still think yields should go higher but who have nonetheless bought Treasurys in recent weeks to avoid underperforming peers and their benchmark indexes.

Investors have pointed to several factors that have tempered their enthusiasm. Those include reduced expectations for fiscal and monetary stimulus, a run of economic data that has fallen below forecasts, and the spread of the Delta variant of Covid-19 that one study suggested might cause more infections even among vaccinated populations.

You will be charged $ + tax (if applicable) for The Wall Street Journal. You may change your billing preferences at any time in the Customer Center or call Customer Service. You will be notified in advance of any changes in rate or terms. You may cancel your subscription at anytime by calling Customer Service.

Please click confirm to resume now.

Why did the stock market sell off? Falling bond yields point to 'growth scare'

MarketWatch 09 July, 2021 - 10:20am

A debate has raged among investors and analysts over the explanation for the fall in Treasury yields, which seem to be driving moves across financial markets. But take them all together, and they point to a general sense of unease about what will power a stock market that’s hit a string of record highs amid what many expect to be peak economic growth.

“Our working theory is that we’re in the middle of a modest global growth scare…,” wrote Nicholas Colas, co-founder of DataTrek Research, in a Thursday note.

Read: Why is the 10-year Treasury yield plunging to the lowest since February? Government debt is Wall Street’s new meme asset, says investor

There are individual story lines behind all those moves, Colas acknowledged, including China’s crackdown on tech companies, the Russell 2000’s overstretched rally earlier this year, and concerns about the spread of the delta variant of the coronavirus that causes COVID-19 could trigger new lockdowns.

See: What to expect if ‘peak everything’ already has happened and markets feel the force of gravity again

Combine the narratives, however, and it produces an environment “where investors might rationally say, ‘I’ll park some capital in Treasurys until things become more clear,'” Colas said.

He’s among the optimists, arguing that while yields could continue to fall in coming weeks, it’s too early to write the obituary for the global economic recovery. Instead, this appears to be a moment like those in past cycles where markets “temporarily stop and reassess.”

Bond yields continued to fall on Thursday, with the yield on the benchmark 10-year U.S. Treasury note holding well below 1.3%, down dramatically from 1.45% at the beginning of the week and 1.6% just last month.

William Watts is MarketWatch’s senior markets writer. Based in New York, Watts writes about stocks, bonds, currencies and commodities, including oil. He also writes about global macro issues and trading strategies. Before moving to New York, he reported for MarketWatch from Frankfurt, London and Washington, D.C.

Gold set for weekly gain as Delta variant threat looms

CNBC 08 July, 2021 - 10:46pm

Gold wiggled in a tight range on Friday as concerns over the Delta variant of COVID-19 were offset by a slight bounce in the U.S. Treasury yields, though the safe-haven metal remained on track for a third straight weekly gain.

Spot gold edged down by 0.1% to $1,800.86 an ounce by 1114 GMT but was up 0.8% on the week. U.S. gold futures rose 0.1% to $1,801.60.

If there is going to be a slowdown in the global economy as a consequence of rising Delta variant cases that should be positive for gold, said CMC Markets UK's chief market analyst Michael Hewson.

"On a technical basis $1,825 will be a tough nut to crack, and if yields continue to rebound from the lows we saw this week, then we could see gold drift towards about $1,790," Hewson added.

Benchmark U.S. 10-year Treasury yields ticked higher from a more than four-month low hit in the previous session but were down on the week.

Higher yields translate into a higher opportunity cost for holding non-yielding bullion.

Meanwhile, the U.S. Federal Reserve's Mary Daly told the Financial Times that low vaccination rates in some regions of the world pose a threat to the United States and global growth, adding that the central bank was fully committed to eliminating shortfalls in employment.

Data on Thursday showed a rise in the number of Americans filing new claims for unemployment benefits last week.

"Investors are likely watching if gold can close out the week above $1,800 ... (If it doesn't) Investors will likely hold off buying the short-term as they expect lower prices ahead," said Vincent Tie, sales manager at Singapore dealer Silver Bullion.

Elsewhere, silver rose 0.4% to $26.01 an ounce but was down over the week after rising for the previous fornight. Platinum , meanwhile, gained 1.2% to $1,088.00 and palladium eased by 0.1% to $2,802.26.

Got a confidential news tip? We want to hear from you.

Sign up for free newsletters and get more CNBC delivered to your inbox

Get this delivered to your inbox, and more info about our products and services. 

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

U.S. stocks follow Europe up; Treasury yields rise, dollar firm

Yahoo Finance 08 July, 2021 - 09:35pm

LONDON/NEW YORK (Reuters) -U.S. stocks moved higher on Friday, following gains in equities in Europe, while Treasury yields rose and the dollar held firm as markets took a cautious breather amid fresh concerns about the pace of economic recovery from COVID-19.

Markets have been roiled this week as a rise in cases of the delta coronavirus variant reduced risk appetite and prompted a flight to safety, with some betting the post-pandemic reflation trade had stalled and secular stagnation was back on the agenda.

The Dow Jones Industrial Average rose 324.99 points, or 0.94 percent, to 34,746.92 at the start of U.S. trading.

The broad S&P 500 gained 21.33 points, or 0.49 percent, to 4,342.15, while the tech-laden Nasdaq Composite added 34.64 points, or 0.24 percent, to 14,594.42.

"There seems to be the gradual realization for many that the vaccination programs alone won’t prove enough to get economies back to their pre-COVID normality, with cases at the global level now ticking up again as the more infectious Delta variant spreads across the world," said Deutsche Bank analyst Jim Reid.

Weighed against that is the ultra-easy monetary policy from many major central banks, although some fear this could yet be curtailed if inflation picks up.

On Friday, data from China showed new bank loans rose more than expected in June, while broad credit growth also picked up. China's central bank also announced a new cut in the cash banks must hold in reserve, trying to shore up growth.

The STOXX Europe 600 index was up 0.8%, recovering about half of the prior session's decline, but still on course to record the second straight week of losses.

Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan had briefly touched two-month lows before paring losses to trade down 0.1%. U.S. stock futures pointed to a higher open on Wall Street, up 0.3%.

Federal Reserve Bank of San Francisco President Mary Daly told the Financial Times that low vaccination rates in some parts of the world posed a threat to U.S. growth.

After dipping sharply over the early part of the week, yields on 10-year Treasury notes were on Friday up around 6.3 basis points to 1.351%, off the 4-1/2 month low of 1.25% hit on Thursday.

In Europe, safe-haven German Bund yields ticked higher but were still eyeing the biggest two-week drop since March 2020 as investors eyed a likely longer road to economic recovery.

In currencies, the safe haven yen was up 0.26%, at $110.0800, heading for its biggest weekly rise since November. The euro was last up 0.19 percent, at $1.1864.

That left the dollar index, which tracks the greenback versus a basket of other major currencies, hovering around flat, last down 0.2% at 92.213. [FRX/]

"The most important issue to consider is the current drop in yields globally, and what this downward trend implies in terms of risk aversion and trade repositioning," Thomas Flury, Head of FX Strategies at UBS Global Wealth Management, wrote in a note.

"So far, we think markets are trapped in some momentum trades, which have little persistence."

Gold, another safe-haven asset, was on track for its third straight weekly gain. It was last up 0.1% at $1,804 an ounce.

Oil prices added to overnight gains as U.S inventories declined, but remain on course for a weekly loss. Brent crude was up 67 cents to $74.79 a barrel. U.S. crude added 79 cents to $73.73 per barrel. [O/R]

(Additional reporting by Abhinav Ramnarayan, Swati Pandey and Sujata Rao; Editing by Shri Navaratnam, Giles Elgood, Timothy Heritage, William Maclean)

U.S. stock indexes rose on Friday as shares of companies that benefit from economic restart including energy firms and banks rebounded after a selloff, helping erase some losses triggered by growth worries earlier in the week. The S&P 500 banks index jumped 2.1% as the benchmark 10-year Treasury yield snapped an eight-day losing streak. Wall Street's main indexes slid on Thursday, with the S&P 500 and the Nasdaq pulling back from record closing highs as investors flocked to bond markets on concerns that the domestic economic recovery was losing steam.

Chart: Axios visual; Data: Century21Des Moines residents have spent the last year talking about our frenetic housing market, but there are early signs that some equilibrium is on its way.Why it matters: Nobody wants to be priced out of home ownership. Also, it's nice to have a larger inventory so you don't have to pounce on every listing that pops up.Get market news worthy of your time with Axios Markets. Subscribe for free.State of play: Homes are still moving at a historically fast pace, but t

The Dow Jones Industrial Average dived 500 points Thursday, as the 10-year Treasury yield tumbled. Tesla stock reversed amid strong China sales.

The Dow Jones Industrial Average surged 400 points Friday, as the 10-year Treasury yield snapped back. Tesla stock is at key support levels.

(Bloomberg) -- Zomato Ltd., the Indian food delivery startup backed by Jack Ma’s Ant Group Co., plans to raise 93.75 billion rupees ($1.3 billion) in an initial public offering, boosting its target by about 14% as demand in its home market rises.The bulk of this will be new shares priced at 72 rupees to 76 rupees each, while investor Info Edge India Ltd. will sell as much as 3.75 billion rupees of stock, according to an advertisement in the Financial Express newspaper Thursday. The IPO opens Jul

(Bloomberg) -- A European Union technical mission arrived in Venezuela to assess whether conditions exist to deploy an electoral observation mission during the Nov. 21 governor and mayoral elections.The EU group will meet Thursday with Foreign Affairs Ministry officials and the Electoral Council, responsible for organizing the vote, according to four people with knowledge of the meetings.European delegates will also hold conversations with political party leaders participating in the upcoming el

The designer also teased that he will reveal a special collaboration with graffiti artist Katsu with a show in Beijing on Friday.

The top U.S. business and labor groups jointly urge Congress to pass bipartisan infrastructure plan

Yields for long-dated U.S. government debt are slightly higher early Friday for the first time in five sessions, as a rally that took the 10-year and 30-year Treasurys to lows not seen since February took a breather.

With the economic recovery strong, the hot housing market enticing private-equity buyers, and inflation on the rise, some Fed officials are advocating for gradual tightening.

On a sweaty recent Thursday afternoon, Alex Berrios was instructing his team on how to get people to register to vote. Berrios, co-founder of a new nonprofit, Mi Vecino, or “My Neighbor” has a lot riding on developing the right pitch. Fifteen months before the midterm elections, groups like his are mobilizing across the country — both Democrats who have enjoyed a historic Latino allegiance and Republicans emboldened by gains in 2020 — all trying to lock down the fastest growing segment of the U.S. population.

U.S. stock benchmarks trade solidly higher Friday, putting equities on track to bounce from a selloff in the previous session triggered by a continued drop in Treasury yields and doubts about the global economic recovery from the pandemic.

Inside Congress, Democratic lawmakers are working to make sure President Joe Biden’s proposed tax hikes on corporations and the wealthiest Americans are codified into law. Outside Congress, some of the most powerful lawmakers’ former staff members are working to make sure they aren’t. Former staffers to nearly two dozen Democratic lawmakers in Congress—including Senate Majority Leader Chuck Schumer and House Speaker Nancy Pelosi—are now working as lobbyists for some of the most prominent groups opposing Democrats’ proposed tax increases on corporations and wealthy Americans, according to an analysis of federal disclosure documents.

Bond yields continued to fall on Thursday, with the yield on the benchmark 10-year U.S. Treasury note holding well below 1.3%, down dramatically from 1.45% at the beginning of the week and 1.6% just last month.

Ukraine's government has proposed the introduction of personal sanctions against 52 Belarusian officials, including President Alexander Lukashenko's son Viktor, the detailed text of its resolution published on Friday showed. Belarus faced a political crisis following an Aug. 9 election marred by vote-rigging allegations that led to mass protests against Lukashenko, who has been in power since 1994. The government in Kyiv decided on Wednesday to propose sanctions against Belarusian officials involved in "falsifying" the results of the 2020 presidential election and human rights violations but did not give names or details.

(Reporting by Ambar Warrick and Devik Jain in Bengaluru; Editing by Arun Koyyur and Shounak Dasgupta)

NEW YORK (Reuters) -Diverse reasons are driving the rotation in stocks and a slide in bond yields, but weakness in travel, leisure and other COVID-19-sensitive stocks suggest that fears of the Delta variant are doing their part. Declines in the shares of companies tied to the reopening trade have broadly outpaced those of other so-called value stocks, which have been battered on worries that economic growth will be slower than expected in coming months. Shares of cruise stocks Carnival Cruise Lines and Norwegian Cruise Line Holdings have slumped 10% and 9%, respectively, in July, while American Airlines Group dropped 4% and United Airlines Holdings was off 5%.

A friend brought a gun over to the house, according to police in Chula Vista, California.

Disney stock is trying to rebound after coronavirus closures took a toll. Here's what fundamental and technical analysis says about buying Disney now.

Credit Suisse has carved out a new role to tackle the risks it takes in lending to investment banking clients and in other customer relationships sensitive to market moves, the bank told employees on Friday. The Swiss bank has appointed Amélie Perrier as Head of Counterparty Market Risk, it said in an internal memo seen by Reuters. The appointment, first reported by the Wall Street Journal, comes as the bank overhauls its risk and compliance functions following a multi-billion dollar loss from the unwinding of trading positions related to family office Archegos.

Business Stories