Experience the latest bond market update. The ongoing conflict in Israel has driven investors towards safer assets, resulting in the best day for bond markets in months.
During this rally, the yield on benchmark 10-year US Treasuries plummeted by 18 basis points to 4.62%, marking the most substantial drop since March. Additionally, the yield on two-year bonds experienced its most significant decline since August.
This surge in bond purchases was exacerbated by comments from US Federal Reserve officials, which hinted at the unlikelihood of interest rates rising further. Vice Chair Philip Jefferson stated that policymakers could proceed cautiously given the recent increase in Treasury yields. Furthermore, Fed Bank of Dallas President Lorie Logan suggested that the surge in long-term rates may reduce the need for further tightening.
Start Your Day with These 5 Things
1) ‘Third wave’ of inflation looming as oil prices surge | Escalating tensions in the Middle East could lead to supply shortages
2) How a Colombian billionaire rode to the rescue at Metro Bank | Jaime Gilinski Bacal will need patience, time, and perseverance to deliver a turnaround at the bank
3) Pothole breakdowns surge by a third, says AA | Motoring association boss welcomes Sunak’s pledge to spend £8bn mending roads
4) The West’s enemies are betting that debt-addled America can no longer afford to be the world’s policeman | The world is becoming increasingly unsafe, and conflict and aid fatigue appear to be setting in
5) Metro Bank vows to protect branches as it launches £30m cost-cutting drive | The embattled lender will slash costs starting from 2025
Overnight Recap
Asian shares saw an uptick as Wall Street gained momentum from potentially positive news about interest rates. Since the summer, interest rates have been dragging down markets.
Oil prices, which initially surged in response to Israel’s declaration of war on Hamas, slightly declined.
In Asian markets, Tokyo’s Nikkei 225 rose by 2.2% to 31,682.71, and Hong Kong’s Hang Seng increased by 1.3% to 17,740.49. Australia’s S&P/ASX 200 surged by 1.2% to 7,053.80, South Korea’s Kospi added 0.4% to 2,419.77, and Bangkok’s SET gained 0.5%.
On Monday, the S&P 500 flipped from losses to gains, climbing by 0.6% to 4,335.66, after two Federal Reserve officials suggested that interest rates might remain steady at the next policy meeting. They speculated that the rise in longer-term bond yields could help cool inflation without requiring further market-rattling hikes by the Fed.
The Dow Jones Industrial Average also rose by 0.6% to reach 33,604.65, and the Nasdaq composite experienced a 0.4% climb to 13,484.24.
While concerns about the Middle East conflict initially drove up oil prices, they subsequently decreased.
Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
