Fed meeting may test low US Treasury yields

2021-07-26 12:04:21

CHICAGO: The $22 trillion market for U.S. Treasury securities may get a reality check from the Federal Reserve this week following a plunge in interest rates that bucked expectations of higher yields this year as the economy rebounds from the COVID-19 pandemic.

Yields, which move inversely to prices, have been in a downward trend since the last Federal Open Market Committee meeting in June. The market initially perceived the Fed as being a bit hawkish as policymakers last

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Embedded as a risk, new Covid cycle could challenge Fed, recovery

2021-07-23 00:08:30

WASHINGTON, – Five weeks after dropping its reference to the coronavirus as a weight on the economy, the U.S. Federal Reserve is confronting a challenging new rise in cases that has fueled doubts about the global recovery and is already forcing other central banks to consider retooling their policies.

The daily pace of new infections has more than doubled since the Fed‘s June 16 policy meeting, when Chair Jerome Powell said that while it was “premature to

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Embedded as a risk, new COVID cycle could challenge Fed, recovery

Five weeks after dropping its reference to the coronavirus as a weight on the economy, the U.S. Federal Reserve is confronting a challenging new rise in cases that has fueled doubts about the global recovery and is already forcing other central banks to consider retooling their policies.

The daily pace of new infections has more than doubled since the Fed’s June 16 policy meeting, when Chair Jerome Powell said that while it was “premature to declare victory” given the appearance

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‘Every time, it’s messy:’ US again approaching debt ceiling

The US Congress will learn on Wednesday when the federal government will likely run out of money to pay its bills, setting the stage for the latest in a long series of fights over what is known as the debt ceiling.

A failure by Democrats and Republicans to work out differences over whether government spending cuts should accompany an increase in the statutory debt limit, currently set at $28.5 trillion, could lead to a shutdown of the federal government

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Asian shares, US yields rise as investors reassess rout

2021-07-21 08:44:07

SHANGHAI: Asian shares and U.S. Treasury yields rose on Wednesday, clawing back some of the week’s losses as investors reassessed economic worries, but the dollar was firm on concerns over the impact of a fast-spreading coronavirus variant.

Rising COVID-19 infections have rocked global markets this week as investors dumped risk assets, seeking stability in safe haven assets like bonds. That sent stocks tumbling and pushed the benchmark U.S. 10-year yield to five-month lows on Tuesday.

But on Wednesday,

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Gold prices flat as lower US bond yields offset firmer dollar

2021-07-20 08:06:01

Gold prices were flat on Tuesday, as a slide in US. Treasury yields offset a firmer dollar amid investor concerns over a relentless surge of the Delta coronavirus variant that could threaten the outlook for global economic recovery.

FUNDAMENTALS

* Spot gold was steady at $1,813.15 per ounce, as of 0057 GMT, after falling to a one-week low of $1,794.06 in the previous session.

* U.S. gold futures edged up 0.3% at $1,813.80.

* Benchmark 10-year Treasury yields

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Gold slips off one-month peak as U.S. dollar, yields rebound

2021-07-17 00:03:46

Gold dipped on Friday as a stronger dollar and rebounding yields dulled its appeal and pushed the metal off one-month highs reached in the last session on dovish remarks from the head of the U.S. Federal Reserve.

Spot gold fell 0.6 per cent to $1,817.40 per ounce by 10:18 a.m. EDT, though it was up 0.5 per cent so far this week. U.S. gold futures fell 0.3 per cent to $1,824.20.

Benchmark U.S. 10-year Treasury yields edged

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Don’t rely on markets to see inflation threat: Ex-US Treasury sec

2021-07-11 17:40:17

VENICE: Former US Treasury Secretary Lawrence Summers said technical factors were probably at play in the recent surge in bond markets and warned that markets may be underestimating the risk of inflation.

US Treasury yields fell sharply last week as investors came to the view that world economic growth may have peaked and a pick-up in inflation could prove transitory.

Summers told Reuters in an interview that the recent moves may be driven by “a variety of

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G20 warns of risk to global recovery from virus variants

The global economic recovery is at risk from the rise of new coronavirus variants and poor access to vaccines in developing countries, finance ministers of the world’s 20 largest economies warned on Saturday

The G20 gathering in the Italian city of Venice – the ministers’ first face-to-face talks since the start of the pandemic – also endorsed a move to stop multinationals shifting profits to low-tax havens.

That paves the way for G20 leaders to finalise a new global minimum

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Why are yields falling? More buying than selling!

2021-07-09 11:46:34

LONDON: Investors confounded by the recent rally in U.S. Treasuries despite inflation running hot in a roaring economy are pointing to the simplest explanation for a move higher in prices: more buying than selling.

U.S. benchmark 10-year Treasury yields hit 1.25% – their lowest levels since February – on Thursday, the latest leg lower in a move that has left many an investor scratching their heads.

Bonds are typically expected to be sold in a reflationary environment, normally

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Gold set for third straight weekly gain as yields, dollar weaken

2021-07-09 08:24:30

Gold prices on Friday were set for the third straight weekly gain, as a slight pullback in the dollar made bullion less expensive for other currency holders, while a drop in U.S. Treasury yields also offered support to the safe-haven metal.

FUNDAMENTALS

* Spot gold was steady at $1,800.85 per ounce, as of 0108 GMT. Prices have risen 0.8% so far this week.

* U.S. gold futures were steady at $1,801 per ounce.

* The dollar index retreated

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Wall Street slides as bond market rallies on fears of recovery losing steam

2021-07-09 07:49:43

NEW YORK: Wall Street fell sharply on Thursday from the previous session’s record closing high, on a broad sell-off fueled by uncertainties surrounding the pace of the U.S. economic recovery.

As the bond market rallied on a flight to safety, all three major U.S. stock indexes turned sharply lower early but pared losses by late afternoon. The S&P 500 and the Nasdaq retreated from a series of all-time closing highs.

“We are now down to the levels of

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Dollar near three-month high after Fed minutes reaffirm taper timeline

2021-07-08 08:16:02

TOKYO: The dollar traded near its highest in three months versus major peers on Thursday after minutes of the Federal Reserve’s June policy meeting confirmed the world’s biggest central bank is moving toward tapering its asset purchases as soon as this year.

The dollar index, which measures the greenback against six rivals, held its ground at 92.702, little changed from Wednesday, when it touched 92.844 for the first time since April 5.

Fed officials said substantial further progress

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Gold steady above $1,800/oz as lower yields counter stronger dollar

2021-07-08 08:10:05

Gold held steady on Thursday as lower US Treasury yields countered a stronger dollar after minutes from the Federal Reserve’s last meeting showed that the central bank is moving towards tapering its asset purchases as soon as this year.

FUNDAMENTALS

* Spot gold was little changed at $1,803.01 per ounce, as of 0109 GMT.

* U.S. gold futures edged 0.1% higher to $1,804.30 per ounce.

* Benchmark U.S. 10-year Treasury yields dropped to their lowest since Feb. 19,

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Short exit stampede at 1.4% drives US Treasury yield slump, traders say

2021-07-07 22:57:00

LONDON: An unwinding of bets by some hedge funds against 10-year US Treasuries, the world’s safest asset, explains the sudden ructions in bond markets, traders and fund managers told Reuters on Wednesday.

Yields on 10-year Treasuries, which move inversely to prices, recently stood at around 1.30 per cent in New York trading after falling to a more than four-month low of 1.296 earlier in the session. They are now more than 45 bps below a January 2020 high

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Janet Yellen’s next test: Persuading G20 that U.S. Congress will not block tax deal

U.S. Treasury Secretary Janet Yellen was able to help corral 130 countries to agree to a major revamp of international corporate taxation, but showing them she can bring a deeply divided U.S. Congress on board may prove equally challenging.

Yellen is expected to face questions from G20 finance leaders at a meeting in Venice, Italy, this week about how the Biden administration will win legislative approval to increase the U.S. corporate minimum tax rate and implement new rules that would

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Euro zone bond yields up as inflation expectations rise

2021-07-05 22:56:24

LONDON: Euro zone government bond yields ticked up on Monday amid expectations of rising inflation, but analysts expect the recent downward trend to resume after last week’s U.S. payrolls data failed to tempt investors away from the safety of fixed income.

A measure of euro zone inflation expectations — the five-year, five-year inflation forward — rose to 1.606%, its highest since May 19.

A survey on Monday showed business activity in the euro zone expanding at the fastest

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Fed update weighs down Wall Street, adds fuel to the dollar

2021-06-19 12:07:49

WASHINGTON: All three main indices on Wall Street dropped Friday with investors wary of a more hawkish stance from the U.S. Federal Reserve, while the dollar posted the strongest gains in over a year and oil prices continued a steady climb.

After starting the week near record highs, U.S. stocks have steadily dropped since Fed officials projected Wednesday that interest rates may rise sooner than previously expected.

The Dow Jones Industrial Average fell 533.37 points, or 1.58%,

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Global equity funds see biggest inflows in three weeks: Lipper

2021-06-18 20:24:57

Investment flows into global equity funds jumped to the highest in three weeks in the week ended June 16, as investors shrugged off inflation worries and focused on the improving global economic outlook.

Global equity funds received a net $10.3 billion in the week ended June 16, compared with about $13 billion outflows in the previous week, data from Refinitiv Lipper showed.

European equity funds led inflows, luring $8.6 billion, while U.S. equity funds and Asian equity funds

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Nikkei climbs 0.7% at close; Japan shares inch higher, Toshiba up after ouster of board directors

2021-06-14 13:17:14

TOKYO: Japanese shares rose on Monday as cyclicals such as tyre makers and shippers led gains on global recovery hopes, while Toshiba rose after the company said two of its board directors will retire amid its governance crisis.

The Nikkei share average gained 0.74 per cent to 29,161.80, its highest close since May 10. The broader Topix rose 0.29 per cent to 1,959.75.

The gains came as US stocks closed modestly higher on Friday, with the S&P 500

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