Categories: Latest News

Dollar, Treasury yields retreat from multi-month high

Ten-year Treasury yields fell to just above 1.10% after interest in a government auction

The dollar held losses and Treasury yields continued their retreat from a 10-month high as traders weighed the appetite for bonds and the latest comments from Federal Reserve officials on asset purchases. S&P 500 contracts edged higher and European futures were little changed. Asian stocks headed toward another record high.

Ten-year Treasury yields fell to just above 1.10% after solid interest in a government auction on Tuesday. Two Fed officials also pushed back against speculation that asset purchases could be tapered soon. The dollar’s decline aided emerging-market currencies.

In Japan, the Nikkei 225 outperformed Wednesday, reaching a record in dollar terms. Equities also ticked up in South Korea, while Hong Kong shares were flat. Oil was on course for its longest winning streak in almost two years.

The rollout of vaccines and the prospect of more U.S. fiscal support have boosted expectations for an economic recovery. The Treasury yield curve has been steepening this year as investors bet on additional spending and increased bond issuance. At the same time, there are lingering concerns over possible speculative excess in stock markets near all-time highs in the middle of a pandemic.

What I think investors are most focused on is the digesting of what is shifting fiscal policy, said David Bianco, chief investment officer of the Americas at DWS Group. We’re beginning to lose the anchor on some long-term key benchmark interest rates.

In Washington, the House is moving forward on an expected vote to impeach President Donald Trump for the second time in little more than a year. President-elect Joe Biden will seek a deal with Republicans on another round of stimulus, rather than trying to ram a package through without their support, according to people familiar with the matter.




Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Share
Richard Stanley

Recent Posts

World stock markets hit record highs

Asian stocks touched new peaks, Wall Street reached new highs, and MSCI’s global index added 0.28% World stock markets racked… Read More

3 hours ago

London stocks to open marginally lower

The FTSE 100 finished 0.4% lower at 6,715.42 on Thursday, down 0.3% since the week began Stocks in London are… Read More

3 hours ago

Indonesia stock market flat

The Jakarta Composite Index ended slightly lower, dropping 0.25 percent at 6,413.89 The Indonesia stock market has alternated between positive… Read More

4 hours ago

Netflix share price soars to double-digit gains on 200 million subscribers milestone is passed

The Netflix share price has soared by almost 13.5% in early trading on Wall Street this morning after the television… Read More

1 day ago

Stock market surges as Biden becomes president

The S&P 500 added 13 per cent on Wednesday, the best increase seen for any president since 1952 The stock… Read More

1 day ago

China stock market bounces higher again

The index added 0.47 percent to close at 3,583.09, while the Shenzhen Composite Index climbed 1.43 percent to finish at… Read More

1 day ago

This website uses cookies.

Read More