Latest news with #bondyields
Bloomberg
3 days ago
- Business
- Bloomberg
Fed Will Continue to be Data-Dependent: Sharma
Algorithm Research CEO and FounderKetaki Sharma discusses the recent trade court ruling deeming tariffs illegal, strong data coming out of the US and rising bond yields with Bloomberg's Joumanna Bercetche on 'Horizons Middle East and Africa.' (Source: Bloomberg)
Zawya
4 days ago
- Business
- Zawya
Euro zone bond yields up as investors exit safe havens after court blocks Trump tariffs
Euro zone government bond yields inched up on Thursday, as investors ditched safe havens for riskier assets after a U.S. federal court blocked most of President Donald Trump's sweeping tariffs. Investors moved away from bonds, gold, and safe-haven currencies such as the yen and Swiss franc after the Manhattan-based Court of International Trade ruled on Wednesday that Trump overstepped his authority by imposing across-the-board duties on imports from the United States' trading partners. The Trump administration has appealed the ruling, which does not include sectoral levies, and could seek other legal avenues for Trump to impose tariffs. "(The court ruling) removes some uncertainty, but it adds some," said Kenneth Broux, head of corporate research FX and rates at Societe Generale. Though the news provided a relief boost to stocks and the dollar, he said, the situation nonetheless remained very unpredictable. Germany's 10-year government bond yield, the euro area benchmark, rose 3.5 basis points (bps) to around 2.58%. It fell to around 2.51% on Tuesday, its lowest level since May 8. "What we are seeing is some dispersion in bond markets," Broux said, with the recent rise in yields highlighting not only supply and demand constraints but also fiscal dynamics. Long-term bond yields have risen this month on growing concern about rising debt levels among big economies such as the United States and Japan. German 30-year government bond yields edged up nearly 4 bps to around 3.08%, while the 2-year government bond yield, more sensitive to European Central Bank policy rates, rose 2 bps to 1.82%. Markets have fully priced in a 25-bps interest rate cut from the ECB when it meets next week. They also indicated a deposit facility rate at 1.71% in December, from 1.55% in mid-April. Italy's 10-year yield rose 3 bps to 3.58%, leaving the spread between Italian and German yields around 97 bps. U.S. Treasury yields also rose on the day, with the yield on the benchmark 10-year Treasury note up over 5 bps to 4.533%.
The Independent
4 days ago
- Business
- The Independent
FTSE drops back amid retail weakness and higher bond yields
The FTSE 100 lost ground on Wednesday as recent positivity wavered in the face of rising bond yields. Equities in the City were slightly higher at the start of trading but drifted throughout the session. Retail stocks, such as Sainsbury's, were among the notable fallers as industry data showed another jump in food inflation in recent weeks. London's top index finished down by 0.59%, or 52.04 points, to close at 8,726.01. Elsewhere in Europe, optimism earlier this week after US-EU trade talks appeared to be fading away, with traders looking unfavourably upon a lack of news regarding the talks. The Cac 40 ended 0.47% lower for the day and the Dax index was down 0.66%. In the US, Wall Street's main indexes opened a touch higher but quickly lost ground amid weakness in the mortgage sector and caution ahead of key earnings figures from Nvidia. 'This week's stock market rally is taking a breather ahead,' said Axel Rudolph, senior technical analyst at IG. 'Stock indices and bond yields lack direction ahead of Nvidia's after-hours Q1 earnings, pausing this week's ascents. 'US mortgage applications are falling for a second week in a row as benchmark, 30-year, fixed mortgage rates continue to climb to their highest level in four months, close to the 7% mark.' Meanwhile, in currency, sterling dropped back after striking a three-month high against the weak dollar on Tuesday. The pound was 0.29% lower at 1.346 US dollars and was up 0.06% at 1.192 euro when London's markets closed. In company news, home improvement giant Kingfisher was lower at the end of trading despite a rise in sales. The B&Q owner said the chain was boosted by rocketing demand for its garden and seasonal ranges in the UK due to warm weather, although trading challenges remained across its operations in France. Kingfisher shares finished down 3.5% on Wednesday. Elsewhere, Pets at Home was in the green as growth in its vet arm continued to boost revenues and profits. It helped the UK's largest pet retailer to offset a 'subdued' market for pet products this year as conditions continue to 'normalise' following a boom in puppy and kitten ownership during the Covid pandemic. It saw shares move 1.6% higher by the close of play. Magners and Tennent's maker C&C Group moved 3.2% higher after progress in its turnaround plan helped drive a recovery in profits. C&C reported a group operating profit of 45.8 million euros (£38.5 million) for the year to February 28, recovering from a 84.4 million euros (£70.9 million) loss a year earlier. The price of oil moved a touch higher during the session amid heightened tensions in the Middle East. A barrel of Brent crude oil was 1.8% higher at 63.71 dollars (£47.30) as markets were closing in London. The biggest risers on the FTSE 100 were: Endeavour Mining, up 46p to 2,276p; Pershing Square, up 78p to 3,954p; Unite Group, up 15p to 835p; Hikma Pharmaceuticals, up 36p to 2,148p; and Polar Capital Technology Trust, up 5p to 331.5p. The biggest fallers on the FTSE 100 were: Kingfisher, down 10.5p to 285.3p; Sainsbury's, down 9p to 284p; Lloyds, down 1.86p to 76.62p; Anglo American, down 51p to 2,184.5p; and Melrose Industries, down 10p to 466.5p.
CNA
4 days ago
- Business
- CNA
Demand at Japan's 40-year bond auction sinks
Long-dated Japanese bond yields rose from three-week lows, after demand for Japanese long-term debt fell to its lowest since July. A weak showing at today's 40-year bond auction has sent yields up across various tenors. Bank of Japan governor Kazuo Ueda informed parliament this morning that they are closely monitoring long-term yields, as these can also influence short-term yields. Global investors will be watching for the central bank meeting next month where it's expected to discuss changes to its tapering of debt purchases. Roland Lim reports.
Zawya
5 days ago
- Business
- Zawya
Euro zone bond yields edge up, snapping 4-day falling streak
Euro zone government bond yields edged up on Wednesday, snapping a four-day falling streak as investors await developments on the tariff front, which could affect the economic outlook. U.S. President Donald Trump on Tuesday said the EU's move to set up talks was positive and that he hoped Europe would "open up" to trade with the U.S. even as he reiterated his threat to impose trade terms if no agreement emerges. Meanwhile, super-long-dated Japanese government bond yields jumped after a sharp decline in the previous three sessions on expectations that the Ministry of Finance was considering cutting super-long bond issuance to ease market pressure. Germany's 10-year government bond yield, the euro area benchmark, was up 2 basis points (bps) at 2.55% after hitting 2.513% on Monday, its lowest level since May 8. U.S. stock index futures slipped on Wednesday after a sharp rally in the previous session, when easing tariff tensions boosted sentiment. Some market participants expect the European Central Bank to ease its monetary policy if U.S. tariffs prompt a sharp economic slowdown in the euro area to prevent inflation from undershooting the ECB's target. Markets price in a 90% chance of an ECB 25 bps rate cut next week. They also indicated a deposit facility rate at 1.70% in December, from 1.55% in mid-April after the ECB policy meeting. ECB Chief Economist Philip Lane said that while most factors pointed to euro area inflation continuing to fall, there were others, including the risk of EU-U.S. trade talks failing, that could drive inflation up. The number of people out of work in Germany rose at a faster pace than expected in May. "Looking ahead, there are tentative signs of a bottoming out of the labour market," said Carsten Brzeski, global head of macro at ING. "At the same time, ongoing announcements of potential cost-cutting measures in the automotive and other industries and the continuing increase in the number of bankruptcies are a strong warning against premature celebration." Benchmark 10-year U.S. Treasury yield was up 4 bps in London trade after declining 7.5 bps on Tuesday. Italy's 10-year yield rose 2 bps to 3.55%. The gap between Italian and German yields stood at 97 bps, after reaching 90.90 bps last week, its lowest level since March 2021. According to Barclays, which has lowered its target range for the Italian-German yield gap to 70-120 bps from 90-140 bps, the recent tightening "reflects the dissolution of the distinctions between core-periphery euro area government bonds." (Reporting by Stefano Rebaudo, editing by Ros Russell)
