Markets are shifting their attention to Tuesday’s Consumer Price Index (CPI) report for January, which is expected to provide clues as to the Federal Reserve’s next interest rate policy decision. “The market is still trying to get a sense of how much the Fed can lower interest rates and how quickly, and I think a softer CPI reading next week would certainly go a long way in encouraging the Fed that inflation is under control,” Gennadiy Goldberg, the head of U.S. rates strategy at TD Securities observed.

Given current economic conditions, traders are pricing an 18% chance that the Fed will implement a rate cut in March, down from 64% last month. A 58% chance of a May rate cut has been priced.

The post Bonds Hit Two-Month High Ahead of Inflation Data appeared first on theprimarymarket.com.

Futures listed on the S&P 500 and the Nasdaq 100 were both down by 0.2%, while contracts on the Dow Jones Industrial Average remained relatively unchanged. In Europe, stocks on the Stoxx 600 also remained stagnant, as did the MSCI Emerging Markets Index. This comes after U.S. stocks rallied in recent weeks off the back of increasing bets that the Federal Reserve would introduce interest rate cuts as soon as March next year.

Among the incoming economic data that markets will wait to digest later this week are existing home sales figures, due later on Wednesday, and GDP data due on Thursday. Friday will see the release of the latest personal consumption expenditures – the Federal Reserve’s preferred inflation gauge—which is expected to provide some guidance on the direction of the Fed’s monetary policy.

The post Bonds Rally, Stocks Pause Following Further Inflation Data appeared first on theprimarymarket.com.

The 10-year Treasury yield ended Monday’s session at 4.87%, while the 30-year Treasury yield closed at 5.01%. Despite the minor retreat, bonds remained steep, raising investors’ bets that the Federal Reserve would move to keep interest rates higher for longer. While concerns revolving around the ongoing Middle East conflict have encouraged sell-offs, investors will await the latest round of Big Tech earnings this week to better gauge the economic climate.

Chevron shares rose by 3% in pre-market trading after the company announced its plan to purchase Hess for $53 billion in stock so that it can expand its operations in Guyana. Roivant Sciences stocks surged by 12% after Roche, a bowel drugmaker subsidiary, agreed to purchase Telavant for $7.1 billion.

The post Stocks Recover After Treasury Yield Passes 5% appeared first on theprimarymarket.com.

10-year US Treasury Yields rose for a fourth consecutive day, edging closer to the 5% mark for the first time since 2007. This has prompted Federal Reserve officials to insist on backing a strict fiscal policy.  Federal Reserve Bank of New York President John Williams explained that interest rates are required to remain steep “for some time” in order to lower inflation to the central bank’s 2% target.

“Despite improving inflation numbers, there is a conflict as Treasury yields are rising, leading to uncertainty about the future of monetary policy,” economists at Rand Merchant Bank in Johannesburg, South Africa explained.

The post Stocks Fall Amid Weak Earnings and Rising Yields appeared first on theprimarymarket.com.

As Israel prepares to ramp up its retaliation against terror organization Hamas for Saturday’s deadly attack, analysts from Bloomberg Economics believe that oil could surge to $150 per barrel while cutting $1 trillion off world economic output.

Speaking on Treasury yields, Christophe Barraud, chief economist and strategist at Market Securities LLP, offered the following observation: “Bonds are rallying ahead of the weekend as traders likely want to hedge geopolitical risk.” Futures on the New York Stock Exchange declined, with those on the S&P 500 slipping by 0.3% and futures on the Nasdaq 100 falling by 0.6%. Contracts listed on the Dow Jones Industrial Average remained little changed.

The post Oil and Treasury Yields Surge as Israel-Hamas Conflict Intensifies appeared first on theprimarymarket.com.

This turnaround comes after the indexes suffered a heavy loss earlier in the day as the 30-year Treasury yield hit 5% for the first time since 2007. Yields later cooled off, with the 10-year yield falling below 4.8%.

Analysts broadly believe that the recent sell-off comes as investors become increasingly convinced that the era of lower interest rates is drawing to a close. On Tuesday, two more Federal Reserve policymakers affirmed that rates are set to remain higher for longer.

The post Wall Street Stocks Recover After Bond Sell-Off appeared first on theprimarymarket.com.

Futures on the S&P 500 advanced by 0.3%, as did those on the Nasdaq 100. Contracts listed on the Dow Jones Industrial Average edged 0.2% higher. The yield on 10-year Treasuries fell by four basis points to 4.5%.

While the Bloomberg Spot Dollar Index remained little changed, the U.S. dollar strengthened against several major currencies. The euro declined by 0.1% to $1.0559, while the offshore yuan fell 0.1% to 7.3176 per dollar. The British pound was unchanged at $1.2149.

The post Dollar and Stocks Steady as Bonds Ease From Record Highs appeared first on theprimarymarket.com.

MSCI’s broad index of Asia-Pacific shares outside Japan advanced 0.9% during the course of the day, with Hong Kong’s Hang Seng index gaining 1.3% as Chinese shares embark on the road to recovery. Japan’s Nikkei Index rose 0.9%. European stock futures gained 0.6% while futures on London’s FTSE edged 0.3% higher.

The Chinese yuan stabilized around 7.2845 to the dollar, with the yen rising 0.2% against the dollar to 145.95 following a meeting between the Bank of Japan chief Kazuo Ueda and the Prime Minister.

The post Asian Stocks Rebound From Losing Streak as Bonds Hit Record High appeared first on theprimarymarket.com.

The S&P 500 index fell 0.01% and the Nasdaq Composite declined by 0.2% while the Dow Jones Industrial Average ended the week higher by 0.08%. The 10-year U.S. Treasury note fell slightly to 4.255% after hurtling toward a 16-year high earlier in the week. Investors now expect the Fed to hold interest rates higher for longer.

Oil prices rose on Friday yet continued to post a weekly decline, bringing an end to a seven-week winning streak. U.S. crude rose 1.13% to $81.30 per barrel while Brent crude gained 0.77% to $84.85 per barrel. Despite the 0.16% decline of the dollar index on Friday, the dollar remains on course for its fifth straight weekly rise.

The post Oil and Stocks Slide, Dollar and Bonds Rise Ahead of Fed Gathering appeared first on theprimarymarket.com.

U.S. bonds cooled slightly but remained near their 16-year highs. Ten-year U.S. Treasury yields were down 7 basis points to 4.2329% after surging almost 30 basis points this month alone to reach a 10-month peak of 4.3280%; hovering near its highest level since 2007. Britain’s 10-year bond yield surged to its highest level since 2008 at around 4.76%.

In Asia, Hong Kong’s Hang Seng index declined by 2% to its biggest weekly losses in two months while Chinese blue-chip shares fell by 1.2%. Japan’s Nikkei declined by 0.5%, putting it on track to a weekly loss of 3.1%.

The post Global Shares Plunge to Two-Month Low appeared first on theprimarymarket.com.

Markets are shifting their attention to Tuesday’s Consumer Price Index (CPI) report for January, which is expected to provide clues as to the Federal Reserve’s next interest rate policy decision. “The market is still trying to get a sense of how much the Fed can lower interest rates and how quickly, and I think a softer CPI reading next week would certainly go a long way in encouraging the Fed that inflation is under control,” Gennadiy Goldberg, the head of U.S. rates strategy at TD Securities observed.

Given current economic conditions, traders are pricing an 18% chance that the Fed will implement a rate cut in March, down from 64% last month. A 58% chance of a May rate cut has been priced.

The post Bonds Hit Two-Month High Ahead of Inflation Data appeared first on theprimarymarket.com.

Futures listed on the S&P 500 and the Nasdaq 100 were both down by 0.2%, while contracts on the Dow Jones Industrial Average remained relatively unchanged. In Europe, stocks on the Stoxx 600 also remained stagnant, as did the MSCI Emerging Markets Index. This comes after U.S. stocks rallied in recent weeks off the back of increasing bets that the Federal Reserve would introduce interest rate cuts as soon as March next year.

Among the incoming economic data that markets will wait to digest later this week are existing home sales figures, due later on Wednesday, and GDP data due on Thursday. Friday will see the release of the latest personal consumption expenditures – the Federal Reserve’s preferred inflation gauge—which is expected to provide some guidance on the direction of the Fed’s monetary policy.

The post Bonds Rally, Stocks Pause Following Further Inflation Data appeared first on theprimarymarket.com.

The 10-year Treasury yield ended Monday’s session at 4.87%, while the 30-year Treasury yield closed at 5.01%. Despite the minor retreat, bonds remained steep, raising investors’ bets that the Federal Reserve would move to keep interest rates higher for longer. While concerns revolving around the ongoing Middle East conflict have encouraged sell-offs, investors will await the latest round of Big Tech earnings this week to better gauge the economic climate.

Chevron shares rose by 3% in pre-market trading after the company announced its plan to purchase Hess for $53 billion in stock so that it can expand its operations in Guyana. Roivant Sciences stocks surged by 12% after Roche, a bowel drugmaker subsidiary, agreed to purchase Telavant for $7.1 billion.

The post Stocks Recover After Treasury Yield Passes 5% appeared first on theprimarymarket.com.

10-year US Treasury Yields rose for a fourth consecutive day, edging closer to the 5% mark for the first time since 2007. This has prompted Federal Reserve officials to insist on backing a strict fiscal policy.  Federal Reserve Bank of New York President John Williams explained that interest rates are required to remain steep “for some time” in order to lower inflation to the central bank’s 2% target.

“Despite improving inflation numbers, there is a conflict as Treasury yields are rising, leading to uncertainty about the future of monetary policy,” economists at Rand Merchant Bank in Johannesburg, South Africa explained.

The post Stocks Fall Amid Weak Earnings and Rising Yields appeared first on theprimarymarket.com.

As Israel prepares to ramp up its retaliation against terror organization Hamas for Saturday’s deadly attack, analysts from Bloomberg Economics believe that oil could surge to $150 per barrel while cutting $1 trillion off world economic output.

Speaking on Treasury yields, Christophe Barraud, chief economist and strategist at Market Securities LLP, offered the following observation: “Bonds are rallying ahead of the weekend as traders likely want to hedge geopolitical risk.” Futures on the New York Stock Exchange declined, with those on the S&P 500 slipping by 0.3% and futures on the Nasdaq 100 falling by 0.6%. Contracts listed on the Dow Jones Industrial Average remained little changed.

The post Oil and Treasury Yields Surge as Israel-Hamas Conflict Intensifies appeared first on theprimarymarket.com.

This turnaround comes after the indexes suffered a heavy loss earlier in the day as the 30-year Treasury yield hit 5% for the first time since 2007. Yields later cooled off, with the 10-year yield falling below 4.8%.

Analysts broadly believe that the recent sell-off comes as investors become increasingly convinced that the era of lower interest rates is drawing to a close. On Tuesday, two more Federal Reserve policymakers affirmed that rates are set to remain higher for longer.

The post Wall Street Stocks Recover After Bond Sell-Off appeared first on theprimarymarket.com.

Futures on the S&P 500 advanced by 0.3%, as did those on the Nasdaq 100. Contracts listed on the Dow Jones Industrial Average edged 0.2% higher. The yield on 10-year Treasuries fell by four basis points to 4.5%.

While the Bloomberg Spot Dollar Index remained little changed, the U.S. dollar strengthened against several major currencies. The euro declined by 0.1% to $1.0559, while the offshore yuan fell 0.1% to 7.3176 per dollar. The British pound was unchanged at $1.2149.

The post Dollar and Stocks Steady as Bonds Ease From Record Highs appeared first on theprimarymarket.com.

MSCI’s broad index of Asia-Pacific shares outside Japan advanced 0.9% during the course of the day, with Hong Kong’s Hang Seng index gaining 1.3% as Chinese shares embark on the road to recovery. Japan’s Nikkei Index rose 0.9%. European stock futures gained 0.6% while futures on London’s FTSE edged 0.3% higher.

The Chinese yuan stabilized around 7.2845 to the dollar, with the yen rising 0.2% against the dollar to 145.95 following a meeting between the Bank of Japan chief Kazuo Ueda and the Prime Minister.

The post Asian Stocks Rebound From Losing Streak as Bonds Hit Record High appeared first on theprimarymarket.com.

The S&P 500 index fell 0.01% and the Nasdaq Composite declined by 0.2% while the Dow Jones Industrial Average ended the week higher by 0.08%. The 10-year U.S. Treasury note fell slightly to 4.255% after hurtling toward a 16-year high earlier in the week. Investors now expect the Fed to hold interest rates higher for longer.

Oil prices rose on Friday yet continued to post a weekly decline, bringing an end to a seven-week winning streak. U.S. crude rose 1.13% to $81.30 per barrel while Brent crude gained 0.77% to $84.85 per barrel. Despite the 0.16% decline of the dollar index on Friday, the dollar remains on course for its fifth straight weekly rise.

The post Oil and Stocks Slide, Dollar and Bonds Rise Ahead of Fed Gathering appeared first on theprimarymarket.com.

U.S. bonds cooled slightly but remained near their 16-year highs. Ten-year U.S. Treasury yields were down 7 basis points to 4.2329% after surging almost 30 basis points this month alone to reach a 10-month peak of 4.3280%; hovering near its highest level since 2007. Britain’s 10-year bond yield surged to its highest level since 2008 at around 4.76%.

In Asia, Hong Kong’s Hang Seng index declined by 2% to its biggest weekly losses in two months while Chinese blue-chip shares fell by 1.2%. Japan’s Nikkei declined by 0.5%, putting it on track to a weekly loss of 3.1%.

The post Global Shares Plunge to Two-Month Low appeared first on theprimarymarket.com.