All articles tagged with #yields
Gold and other precious metals fell sharply as investors fled safe-haven assets amid renewed inflation fears tied to the Iran conflict, with spot gold down more than 5% intraday and down about 25% from its late-January peak; silver, platinum and palladium also plunged, reflecting a broader shift into risk-off assets as yields rise and demand for bonds increases.
UK gilt yields jumped to their highest since 2008, with the 10-year around 5% and the 2-year about 4.6%, as energy-price pressures from the Iran conflict fuel inflation risks and expectations of further rate rises. The Bank of England is seen holding rates with little chance of cuts this year, pushing up borrowing costs for the government and keeping bond-market volatility elevated; February borrowing came in higher than forecast at £14.3 billion, underscoring the fiscal challenge amid the energy shock.
Australia’s ASX 200 fell 4.3%, the index’s worst day since March 2020, potentially returning to November-levels and risking a move toward May 2025 levels if losses continue. A spike in crude oil prices (and a rally in gold) is driving risk-off sentiment and could complicate the RBA’s soft-landing path, possibly prompting faster rate hikes. Globally, markets slumped: Korea’s Kospi hit a circuit breaker after about an 8% drop and Japan’s Nikkei fell roughly 7.4%, while S&P 500 futures and Nasdaq futures were lower. Bond yields rose: US 10-year up about 8 bps to 4.21%, Australian 10-year up around 15 bps to 4.99% (the highest since Nov 2023). Geopolitical uncertainty and oil-price momentum are underpinning a broad risk-off mood.
Rising Strait of Hormuz tensions threaten oil supplies, potentially lifting prices and inflation expectations while nudging Treasury yields higher. That, in turn, could tighten global liquidity and trigger a Bitcoin liquidity selloff, as crypto markets—especially crypto leverage—are sensitive to funding costs and macro risk, even if geopolitical events aren’t catastrophic. The piece frames oil shocks as a potential trigger for a broader market‑wide liquidity event that could depress Bitcoin and other high‑beta assets.
US policymakers deploy jawboning, a yen-rate check, and MBS buybacks to push down the 10-year yield and mortgage rates amid global bond-market stress linked to Japan’s turmoil; while these tactics provide a temporary pullback, inflation, deficits, and debt burdens suggest underlying risks remain and market volatility could persist.
Intel said it cannot meet surging demand for server CPUs tied to AI data centers and forecast Q1 revenue of $11.7–$12.7 billion with breakeven earnings per share, below consensus. CEO Lip-Bu Tan is cutting costs and steering a new product roadmap, but 18A yields remain below targets and 14A development depends on external customers. The news triggered about a 13% after-hours share drop as supply constraints weigh on data-center sales and margins.
Japan’s government bond market wobbled as investors priced in a clash between a spend-heavy fiscal stance under Takaichi Sanae and the BoJ’s tightening path, sending 30-year yields up sharply and the 40-year yield above 4% for the first time, ahead of the BoJ’s policy meeting.
A crisis in Japan’s government bond market could ripple into U.S. markets by lifting global yields, potentially raising the cost of borrowing for the United States and shaping Federal Reserve expectations, as investors reassess BoJ policy, currency moves, and cross-border funding dynamics.
Japan's yen is weakening as markets demand higher interest rates, but raising rates risks a fiscal crisis given gross debt around 240% of GDP while net debt is about 130%. Official FX intervention is unlikely to stop the slide; the more viable path is to reduce gross debt by selling government assets, which could ease depreciation, though illiquid assets and policy risks complicate any such move.
The article argues that debt crises in advanced economies are more plausible than commonly thought: high public debt plus shocks can push yields higher, and even when central banks cap yields, currencies can depreciate, signaling ongoing, low‑grade crises across Japan, the UK, and parts of the euro area. For example, Japan’s yen falls as JGB yields rise despite BoJ caps, the UK sees rising gilt yields with a relatively stable pound, and Italy, Spain and France face growing debt pressures within a euro framework, though Germany's low debt provides some insulation. The piece concludes that debt distress is already unfolding in the G10 and could deepen.
U.S. stocks rose to new highs on Monday, with the S&P 500, Dow and Nasdaq posting modest gains as traders shrugged off fears of a White House–Fed feud and its inflation implications. Walmart joined the Nasdaq 100, Alphabet gained, and gold hit a record as the dollar weakened; however, credit-card stocks slumped on Trump’s rate-cap proposals and retailers like Abercrombie & Fitch and Urban Outfitters fell short of earnings guidance. The 10-year Treasury yield briefly moved higher before easing, reflecting ongoing policy uncertainty amid political pressure on the Fed.
Treasury market volatility has decreased, but upcoming comments from Fed Chair Jerome Powell could cause a shift, potentially leading to higher yields if hawkish signals emerge, amid divided views on interest rate policy and economic outlook.
A rally in US Treasuries driven by haven buying amid regional bank credit concerns and a government shutdown has pushed benchmark yields to their lowest in months, with expectations of further rate cuts by the Federal Reserve influencing the market outlook.
Private credit is increasingly shifting from developed Western markets to emerging markets, driven by investors seeking higher yields and the saturation of developed markets, with private lenders funding large projects like Angola's new fuel refinery and expanding their presence in sectors such as infrastructure and sovereign debt, despite concerns over risks and opacity.
Mortgage rates have dropped to an 11-month low due to concerns about the job market and falling yields, indicating potential economic slowdown or uncertainty.