Headlines:
The tectonic shift that is taking place in the bond marketGold futures are down more than 8%: Is the next dip-buying opportunity approaching?S&P 500 breaks through a major support as hawkish Fed expectations and US-Iran war weighWall Street poised for another soft start as higher bond yields continue to biteUSD/JPY corrects lower but remains skewed to the upside; faster BoJ tightening needed to reverse the trendECB policymaker Makhlouf says upcoming policy decision will not surprise anybodyBOJ policymaker Takata says need to consider a broad range of options on monetary policy responseIRGC claims that another two oil tankers have been disabled after hitting mines in the Strait of Hormuz
Markets:
10-year Treasury yields +0.6 bps to 4.801%JPY leads, NZD lags on the dayGold down 0.1% to $4,323WTI crude oil down 0.8% to $89.44European indices lower; S&P 500 futures down 0.1%Bitcoin down 0.9% to $76,705
It was a quieter and slower session, with broader markets sitting on edge as global bonds continue to come under pressure.
Bond yields are pushing up everywhere and that is making for a more edgy and nervous mood, with traders and investors needing to think about the implications if things keep at this path.
10-year Treasury yields hit a high of 4.81% earlier, the highest since October 2023. That is joined by a push up in Germany and French 10-year yields to 3.37% and 4.24% respectively, the highest since 2011 and 2008 respectively. At the same time, we’re also seeing 10-year yields in the UK push up to 5.26% – the highest since 2008. And in Asia, 10-year yields in Japan also pushed up to 3.02% – the highest since 1996.
After hitting a high of 160.40 in Asia, USD/JPY did stumble a little in the handover to Europe in a fall to 159.45. The dollar may be sitting higher across the board but is only down against the yen today, with USD/JPY lower by 0.3% to 159.70 currently.
Elsewhere, EUR/USD is down 0.2% to 1.1573 and NZD/USD is down 1.2% to 0.5820 after the RBNZ raised interest rates but hinted at a more gradual tightening path after.
In other markets, gold is drawn into a battle around the $4,300 mark as sellers look to push for more after the drop yesterday. Meanwhile, WTI crude is down slightly by 0.8% to $89.44 after hitting over $92 in Asia earlier. That said, the commodity is still bordering on 7% gains this week so no biggie there.
In the equities space, European stocks are reeling from higher yields and US futures are also looking shaky after three consecutive daily declines since Friday last week. S&P 500 futures are down 0.1% with Nasdaq futures down 0.2% for now.
This article was written by Justin Low at investinglive.com.