yield

China’s yuan eases against the dollar on widening yield differential

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SHANGHAI (Reuters) – China’s yuan eased against the dollar on Friday, as a widening yield spread and balance sheet policy divergences between the U.S. and China remained short-term headwinds for the yuan. The yield gap between China’s 10-year government bonds and its U.S. counterparts has widened by 24 basis points (bps) since Dec. 27 to 144 bps, with the market repricing the U.S. Federal Reserve’s policy easing and expectations for rate cuts in China continuing to build. The yield on actively traded 10-year China government bonds touched the lowest point since April 2020 on Friday. The ongoing divergence in the

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Powerball Tickets Yield $50,000 Prizes in Four New York Cities

Jessica Woods0

COOPERSTOWN, NY; NEWBURGH, NY; ROCHESTER, NY; YONKERS, NY – Four Powerball players in New York State have won third-prize amounts in the Dec 4 drawing, as announced by the New York Lottery. These lucky tickets, each valued at $50,000, were purchased from distinct locations across the state. Stewart’s Shops in Cooperstown, located at 108 Chestnut St, sold one of these tickets. Lake St Exxon at 115 Lake St in Newburgh also dispensed a winning ticket. In Rochester, a winning ticket was sold by Roc Petro at 4179 Buffalo Rd. Lastly, Tanglewood Stationery in Yonkers, located at 2264 Central Park Ave,

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US Treasury yield curve to steepen next year as Fed cuts rates, says BofA

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By Davide Barbuscia NEW YORK (Reuters) – The U.S. Treasury yield curve, which plots the yields of different government bond maturities, will likely steepen in 2024 as the Federal Reserve will start cutting interest rates, a Bank of America analyst said on Wednesday. U.S. Treasury benchmark 10-year yields are expected to be at 4.25% by the end of next year, said Mark Cabana, head of U.S. rates strategy at BofA, in a media briefing. The curve comparing two- and ten-year Treasury yields – widely considered to be a recessionary signal when inverted – is expected to turn positive next year

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Column-High yield bond market may hold less junk than before: McGeever

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By Jamie McGeever ORLANDO, Florida (Reuters) – The U.S. high yield bond market is the dog that has rarely barked, never mind bitten, during the Federal Reserve’s most aggressive interest rate-raising campaign in 40 years. The economy’s remarkable resilience to that monetary tightening, and cooling inflation, are the obvious explanations why spreads have remained well behaved. The ‘junk’ bond market may also contain less junk than it used to. Many companies at the lower end of the credit rating spectrum are opting to raise finance in private markets rather than the more traditional route of issuance via public markets. It

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Fed’s Kashkari: a lot of uncertainty about what is driving yield curve

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Minneapolis Federal Reserve Bank President Neel Kashkari on Friday said there is a lot of uncertainty over what is driving longer-term bond yields, whose rise in September and October helped convince the U.S. central bank it could leave short-term interest rates on hold at its meeting this week.  “Right now, there’s a lot of focus on the Treasury yield curve and what’s driving some of the moves in the yield curve,” Kashkari said at the Economic Club of Minnesota. “If anybody tells you definitively that they know exactly what’s driving that, be very suspect because none of us knows for

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Marketmind: Yield curve control morphs

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A look at the day ahead in European and global markets from Tom Westbrook Japan’s yield cap has evolved into a reference rate, with the Bank of Japan redefining its 1% limit on 10-year government bond yields as an “upper bound” rather than a rigid target. It will keep buying bonds, but time will tell whether and how tenaciously it will impede yields rising beyond 1%. The move was foreshadowed in the Nikkei newspaper and having bought the rumour, markets sold the fact. The yen slipped back to 150 per dollar. After touching an almost 10-year low in morning trade,

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Global equity funds experience notable outflows amid U.S. yield worries

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(Reuters) – Global equity funds suffered significant outflows in the seven days to Oct. 25, hit by worries over higher U.S. bond yields and caution over the war in the Middle East. Investors pulled out a net $7.46 billion from global equity funds during the week, extending outflows into a sixth straight week, data from LSEG showed. The yield on U.S. 10-year Treasury bonds reached a 16-year high earlier this week, breaching the 5% mark, driven by expectations of robust U.S. growth and a growing fiscal deficit. European equity funds logged about $7.39 billion worth of outflows during the week,

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BOJ meets as rising global yields, inflation test yield cap

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By Leika Kihara TOKYO (Reuters) – The Bank of Japan will face growing pressure at its policy meeting next week to shift further away from its controversial bond yield control, amid rising global bond yields and persistent inflation. A spike in U.S. Treasury yields has pushed up the 10-year Japanese government bond (JGB) yield near the BOJ’s 1% cap set just three months ago, testing the bank’s resolve to prevent an excessive market-driven surge in borrowing costs. Whether the central bank will further relax its grip on long-term interest rates will largely depend on how markets move leading up to

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Marketmind: Ominous signal – Wall St slides despite yield slump

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By Jamie McGeever (Reuters) – A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Asian markets look to round off a difficult week with a flourish on Friday, but ominous signals from U.S. trading on Thursday – stocks closed in the red again despite a steep decline in bond yields – do not auger well. The conditions for a sharp rebound on Wall Street were in place – third quarter U.S. GDP beat forecasts, and the ‘soft landing’ narrative was bolstered by some signs of cooling inflation and sharp pullback in yields. But not

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Japan’s 10-year yield hits new decade high on BOJ tweak speculation

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TOKYO (Reuters) – Japan’s 10-year government bond yield touched a new decade-high on Wednesday on speculation that the Bank of Japan (BOJ) may raise its cap for the benchmark yield. The 10-year JGB yield rose to 0.865% earlier in the session, its highest since July 2013. The yield retreated to 0.850%, up 1 basis point (bps) from the previous session. A recent surge in global interest rates is heightening pressure on the BOJ to raise the existing cap on the 10-year bond yield at its policy meeting next week. “If the BOJ raises the ceiling of the 10-year bond yield,

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Ten-year U.S. Treasury yield hits 5%

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LONDON (Reuters) – The yield on the benchmark 10-year U.S. Treasury note rose above 5.0% on Monday, hitting the July 2007 milestone that it briefly attempted to scale last week. The run-up in yields on the 10-year Treasury bond, seen as a safe-haven in times of economic uncertainty and a benchmark for borrowing costs around the world, has been driven by investors pricing in stronger U.S. growth as well as fiscal slippage. Yields at the long-end rose quickly after Federal Reserve Chair Jerome Powell said last week that the U.S. economy’s strength and hot labour market might warrant tighter financial

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Marketmind: Five alive: US yield curve nears historic level

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By Jamie McGeever (Reuters) – A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Another watershed day for U.S. Treasuries on Thursday – the entire curve came within a whisker of trading above 5% – is set to weigh heavily on Asian market sentiment on Friday and potentially seal one of the biggest weekly losses for regional stocks in months. The gloomy end to the week comes as investors also await inflation figures from Japan, Malaysia and Hong Kong; remarks from Bank of Japan governor Kazuo Ueda; and an interest rate decision from China.

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Despite rout, bond strategists stay tethered to falling yield forecasts

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By Sarupya Ganguly BENGALURU (Reuters) – Bond market strategists are holding on to their forecasts for U.S. Treasury yields to decline by year-end, as well as a view that 10-year yields have peaked, despite being proven wrong within days of each of the previous two monthly Reuters polls. The latest predictions come despite a strong U.S. economy, widespread expectations the Federal Reserve will keep interest rates high well into next year, and a bleak fiscal outlook with substantial amounts of debt coming to market. Yields on longer maturities had risen around a full percentage point from lows in July, with

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BOJ could raise 1% yield cap as next move, says academic Ito

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By Takaya Yamaguchi TOKYO (Reuters) – The Bank of Japan could raise its 1% hard cap set for long-term interest rates as its next policy move if the 10-year bond yield threatens to breach that level, Columbia University academic Takatoshi Ito told Reuters in an interview. Under its yield curve control (YCC) policy, the BOJ guides short-term interest rates at -0.1% and the 10-year bond yield around 0%. It also has an allowance band of 50 basis point set either side of the yield target, as well as a hard cap of 1.0% adopted in July. Rising U.S. Treasury yields

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Column-Bear steepening U.S. yield curve dashes ‘soft landing’ hopes: McGeever

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By Jamie McGeever ORLANDO, Florida (Reuters) – The surge in long-dated U.S. bond yields currently underway and driving the so-called ‘bear steepening’ of the yield curve will dramatically reduce the economy’s chances of achieving the fabled ‘soft landing’ and avoiding recession. High and rising long-term borrowing costs tighten financial conditions by making it more expensive for businesses and consumers to roll over debt or get credit, and more expensive for companies to invest. A steepening yield curve is when the spread between long- and short-term bond yields widens. Either the long-term yield rises faster than the short-term yield – a

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Euro zone bond yields slip ahead of U.S. data

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By Stefano Rebaudo and Harry Robertson (Reuters) – Euro zone borrowing costs broadly fell on Thursday, after a bond selloff paused the day before as yields hit crucial levels and as traders waited for U.S. employment figures. This week’s main economic focus will be Friday’s jobs report for September — which is expected to show that employers added 170,000 jobs — but investors will closely watch the weekly jobless claims, due later in the session. Robust economic data coupled with central bank officials’ remarks from both sides of the Atlantic claiming that rates will stay at high levels for an

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Euro zone’s benchmark Bund yield edges back up near 12-year high

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By Stefano Rebaudo and Harry Robertson (Reuters) – The euro zone’s benchmark German bond yield rose on Monday towards last week’s 12-year high as the selloff in debt markets continued after a brief pause on Friday. Germany’s 10-year government bond yield, the benchmark for the euro zone, rose 5 basis points (bps) to 2.885% on Monday. It hit 2.98%, its highest level since early July 2011, last Thursday, before falling on Friday. Bond prices move inversely to yields. The selloff in longer-dated U.S. and euro zone bonds picked up slightly after data showed that the U.S. manufacturing sector took a

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BOJ announces additional bond buying after yield hits decade high

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By Kevin Buckland TOKYO (Reuters) – The Bank of Japan said on Monday it would conduct additional bond buying operations, seeking to slow a rise in yields after the benchmark reached its highest in a decade. Japan’s central bank said it will buy Japanese government bonds with between five and 10 years left to maturity on Wednesday, with the purchase amount to be announced at the time of the operation. The 10-year JGB yield rose 1 basis point to reach the highest since September 2013 at 0.775% in the morning. Ten-year JGB futures pared losses following the announcement to be

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Marketmind: Will Wall St bounce trump latest yield surge?

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By Jamie McGeever (Reuters) – A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Asian markets on Tuesday might take heart from Wall Street’s impressive late show on Monday, but with the dollar and U.S. Treasury yields continuing their relentless march higher, the bigger picture looks much more ominous. Add to that another wave of turbulence to rock the Chinese property sector and the yen sliding closer to 150 per dollar with still no intervention from Japanese authorities, and caution will probably suppress whatever risk appetite investors have. Global shares, as measured by the

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Marketmind: Bond yield surge casts dark quarter-end shadow

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By Jamie McGeever (Reuters) – A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Asia kicks off the last week of the quarter on Monday, with markets badly bruised by the surge in U.S. bond yields following the Federal Reserve’s hawkish pause last week and investors looking to get through the week without any further whiplash. They will be hoping for some sort of bounce, even if it’s only of the dead cat variety, from the most turbulent week since the U.S. regional banking shock in March. This may hinge largely on whether the U.S.

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Fed hawkishness prompts HSBC to raise 10-year Treasury yield target

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By David Randall NEW YORK (Reuters) – The Federal Reserve’s expectations that the U.S. economy will continue to expand and necessitate additional interest rate hikes to combat inflation prompted HSBC to raise its year-end forecast for 10-year U.S. Treasury yields to 3.5% from 3%, strategists at the bank wrote in a note on Thursday. “At a time when the Fed remains hawkish with the support of recent GDP data, there is pressure for short-dated bond yields to remain elevated, and this affects the whole curve,” wrote the firm’s analysts, led by Steven Major, the global head of fixed income. The

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US two-year Treasury yield rises to 17-year high on hawkish Fed

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By Kevin Buckland TOKYO (Reuters) -The yield on two-year U.S. Treasury notes rose to a 17-year high of 5.1970% on Thursday, a day after the Federal Reserve held interest rates steady but stiffened its hawkish stance for future policy. The 10-year yield rose to 4.4310%, a new 16-year peak. The U.S. central bank projected a further rate increase by the end of the year and expected monetary policy to be significantly tighter through 2024 than previously thought. Fed Chair Jerome Powell’s “cautious view that a ‘soft landing’ is not even the base case may reflect the uncertainties of policy lag,

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India bond yield curve inversion to persist on tight liquidity, inflation fears – traders

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By Dharamraj Dhutia MUMBAI (Reuters) – Tight liquidity conditions and sticky inflation will keep the four-year to 10-year part of the Indian government bond yield curve inverted, traders said on Monday. “The curve has inverted because of tight liquidity expectations for September, and materially we do not see anything changing until the end of this month,” said Vijay Sharma, senior executive vice president at PNB Gilts. The four-year 7.38% 2027 bond yield was 7.25%, while five-year 7.06% 2028 bond yield stood at 7.24%. Benchmark 7.18% 2033 bond yield was 7.20%, an inversion of around 4-5 basis points. Investors have been

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Marketmind: Oil, yield spike takes wind out of market sails

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By Jamie McGeever (Reuters) – A look at the day ahead in Asian markets from Jamie McGeever, financial markets columnist. Asia is set for a cautious open on Wednesday after a jump in oil prices to their highest level this year and resulting spike in bonds yields on Tuesday helped take some of the froth out of local stock markets that had built up recently. The regional economic data and policy calendar is light, with Australian second quarter GDP growth figures and the latest snapshot of inflation in Taiwan the only major releases on tap. Australia’s economy is expected to

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Two Fed officials tentatively embrace bond yield jump

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By Michael S. Derby NEW YORK (Reuters) – Two Federal Reserve officials on Thursday tentatively welcomed a jump in bond market yields as something that could complement the U.S. central bank’s work to slow the economy and get inflation back to the 2% target, while also noting they see a good chance that no more interest rate increases will be needed. The policymakers – Philadelphia Fed President Patrick Harker and Boston Fed President Susan Collins – spoke in separate interviews that took place as central bankers and other economic leaders gathered for an annual symposium in Jackson Hole, Wyoming. As

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