Treasuries began the week on the back foot after a US government shutdown was averted, eliminating a point of uncertainty for traders and returning their focus to the path ahead for interest rates.
Yields climbed across the curve in Asia trading Monday, with those on 10-year debt rising as much as five basis points to 4.62%. Five-year yields rose by a similar amount to 4.66%, approaching once more a 16-year high.
“Previously, the market had assumed that the government would be shutdown for the November meeting, so the pricing favored a December hike,” said Kevin Muir, a former trader who now writes the MacroTourist newsletter. “With these new developments, my guess is that the market will price in a greater chance of a November hike, which will mean more pressure at the front-end of the curve.”
Leveraged fund short positions on longer-dated Treasuries remained near record levels, according to the latest data from the Commodity Futures Trading Commission. Their asset manager counterparts are sticking with equivalent levels of bullish bets. “One could argue the market had discounted the idea the Fed wasn’t going to be privy to this important data to make an informed call on a November hike,” Chris Weston, head of research at Pepperstone Group Ltd., wrote in a note to clients. “We should see these rate hike expectations lift a touch.”Canada economic growth misses expectations, backing rate pause
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Once Unthinkable Bond Yields Are Now the New Normal for MarketsIt was the week that bond markets finally seemed to grasp what central bankers have been warning all year: higher interest rates are here to stay.
Lire la suite »
Once Unthinkable Bond Yields Are Now the New Normal for Markets(Bloomberg) -- It was the week that bond markets finally seemed to grasp what central bankers have been warning all year: higher interest rates are here to stay. Most Read from BloombergEurope’s Richest Royal Family Builds $300 Billion Finance EmpirePakistan Rupee Set to Become Top Performing Currency Globally Murder Claim in Canada Is Only Helping India Leader Modi at HomeWeight-Loss Drugs Estimated to Save Airlines MillionsTop Chinese Scientist Claims India Moon Landing Nowhere Near South Pole
Lire la suite »
U.S. stock market’s powerhouses tested by soaring bond yieldsSome investors say the megacaps could be vulnerable if climbing bond yields keep pressuring stocks
Lire la suite »
Raptors' climb up Eastern Conference standings just got steeperLife in the Eastern Conference had already gotten tougher this summer. It took another jump on Sunday. Jrue Holiday is now a member of ...
Lire la suite »
Raptors' climb up Eastern Conference standings just got steeperLife in the Eastern Conference had already gotten tougher this summer. It took another jump on Sunday.
Lire la suite »
Raptors' climb up Eastern Conference standings just got steeperLife in the Eastern Conference had already gotten tougher this summer. It took another jump on Sunday.
Lire la suite »