Japan’s stock market, the Nikkei 225, closed down 0.5% but off its low. Earlier the Nikkei was down 2.5% following the Bank of Japan decision to maintain its short-term interest rate at 0.5% while initiating a gradual sell-off of 330 billion yen in ETFs annually. At the same time Japan’s 10Y yield surged to new […]
Japanese yields send a warning Read More »
Bonds, S&P 500The Bank of England held its base rate at 4%, citing inflation still running well above target. Additionally, it is slowing down its quantitative tightening (QT; bond sales) from £100B/year to around £70B. Inflation in the UK remains sticky (3.8% in August), which supports the BoE’s cautious stance. We should not be surprised to see
Bank of England holds base rate at 4% Read More »
Bonds, FTSE 100, Inflation, S&P 500The U.S. 10-Year Treasury Note yield rose to 4.129% today, up from a previous close of 4.085%, signalling a market rejection of the Federal Reserve’s recent rate cut, as evidenced by the yield’s sharp upward trend in the chart. This unexpected yield increase contradicts the Fed’s intent to lower borrowing costs, with historical data from
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BondsStock markets are cautious with futures holding near record levels as investors wait for this week’s Federal Reserve decision on interest rates. Investors remain optimistic, but volatility may increase due to macroeconomic risks and anticipation of a possible rate cut. In the UK, bond markets and gilts will be watched closely amid concerns about borrowing
Cautious start to the week Read More »
BondsInvestor sentiment is bearish overall, with caution stemming from deteriorating labour market conditions, volatility in bond yields, and fiscal uncertainties. Weak U.S. employment data has bolstered bets for a Fed rate cut. The nonfarm payrolls report showed only 22,000 jobs added in August and an unemployment rate rising to 4.3%. Bond yields declined which is
As yields pull back, gold surges to new highs Read More »
Bonds, GoldThe weak job report from yesterday, which showed only 22,000 jobs added in August and an unemployment rate rising to 4.3%, has pushed consensus among analysts and financial markets that the Federal Reserve should and likely will cut interest rates at its next meeting later this month. Financial markets are now pricing a near-certainty (97–100%
Futures show indecisiveness, hovering around the flatline as investors await key labour market data, which could solidify expectations for a Federal Reserve rate cut at its September meeting. Alphabet soared 9.1% on favourable antitrust developments, and Apple jumped 3.8% providing upward momentum to the Nasdaq and broader indices. But bond yields remain elevated and could
Goldman Sachs warning Read More »
Bonds, InflationBond yields across developed economies are rising mainly due to a combination of higher government deficits, increased debt issuance, quantitative tightening by central banks, and a reduced appetite among traditional buyers for long-dated bonds. Main Drivers of Rising Yields: Fiscal Deficits and Debt Issuance: Many governments are running large fiscal deficits and are borrowing heavily,
Why yields are rising Read More »
Bonds, Inflation