United States markets still fear four interest rate hikes

Dollar climbs as US 10-year bond yield flirts with 3 percent

The move propelled the 10-year yield above 3 percent to its highest since January 2014 and steepened the yield curve from its flattest level in more than a decade last week, Reuters data showed. Bond yields continue to rise and the 10-year Treasury note reached 3 percent for the first time in more than four years.

It's the latest manifestation of the tug-of-war between stocks and bonds that's already been evident this year. Not being able to sell bonds is part of what sunk Toys R' Us, for example.

This week the gap between US and German 10-year government bond yields has hit its widest in 29 years and the US-Japanese 10-year yield spread reached its broadest in almost 11 years.

Betting on two more Fed hikes this year, Bishop believes the bank will likely be closely following the first reading of first-quarter GDP on Friday (27 April). Bond yield are rising globally too as Europe's economy is strengthening and China and India maintain to register strong growth. This could also mean that money starts flowing out of stocks and into fixed income.

He explained: "This path towards higher yields can be stopped in its tracks if we see a meaningful sell-off in risk assets (such as the early February equity rout), in the absence of which we would expect yields to continue to creep higher". "The rise in USA interest rates has come as traders increasingly start to price in four interest-rate hikes in 2018 from the Federal Reserve, rather than the three signaled by policymakers".

The yield on the 10-year note is a barometer for mortgage rates and other types of loans. The yield on the 10-year Treasury note continued to trade at four-year highs, rising to 2.98 percent from 2.96 percent. The euro fell below $1.22, down 0.4%. Yields have also risen at the short end of the curve, with the U.S. 2-year yield having reached a high of 2.483 per cent this week, the highest since September 2008.

Investors aren't reading much into the price action since it looks like it was all short-covering, fueled by a successful defense of the previous main bottom at $1322.60. Commodity-driven inflation could also lead to a faster pace of monetary tightening which would disproportionately harm emerging markets, according to Per Hammarlund, chief emerging-markets strategist at SEB in Stockholm. In particular, the spread between two- and 10-year US Treasury yields is very narrow, although it has increased slightly in recent days with the rise in the 10-year yield.

One group that does stand to benefit from higher yields is savers.

Walmart fell 1 percent after Bloomberg reported that the retailer might spend $12 billion to buy the majority of Indian e-commerce company FlipKart. Given current inflationary expectations, a market adjustment of the TIPS yield to a historical relationship could produce a substantial increase in the nominal 10-year yield.

"Based on interest rates, prices should be lower", said Capital Economics analyst Simona Gambarini.

United States gold futures eased 0.2 per cent to $1,330.60 per ounce.

"When everyone has been talking about whether higher rates impact the economy, the more important thing is how it will impact leverage", Maley said by phone.

Debt in New York Stock Exchange margin accounts is the highest on record, yet the measure necessarily rises when the value of stocks-which are used as underlying collateral-rises.

But the biggest worry is that higher bond yields could be signalling higher inflation and that higher interest rates are coming. "But if we have a slow drift higher, I don't see any reason why it has to be a headwind".

Related News:

  • President Trump could visit Britain in July

    President Trump could visit Britain in July

    The state visit was postponed and no further details of the proposed July trip have been revealed. It would be Mr Trump's first trip to this country since he was elected in November 2016.
    Lauren Cohan to return in 'The Walking Dead' Season 9

    Lauren Cohan to return in 'The Walking Dead' Season 9

    According to an April 25 report by Us Weekly Magazine , Lauren Cohan's contract negotiations were held up for financial reasons. If it doesn't get picked up at all, she's free to stay with The Walking Dead for however long as she chooses.
    Feliciano Lopez: 'I will try to beat Novak Djokovic'

    Feliciano Lopez: 'I will try to beat Novak Djokovic'

    But a reunion with long-time coach Marian Vajda this month had sparked hopes Djokovic could yet steer his career back on track. Djokovic, a 12-time Grand Slam champion, has now failed to reach the quarterfinal of a tournament since Wimbledon past year .
  • Wynn Resorts (WYNN) Stock Rating Upgraded by BidaskClub

    Wynn Resorts (WYNN) Stock Rating Upgraded by BidaskClub

    Vident Investment Advisory Llc sold 2,817 shares as the company's stock rose 5.95% while stock markets declined. (NASDAQ:ANSS). Among 31 analysts covering AT&T Inc. (NASDAQ:ULTA) earned "Peer Perform" rating by Wolfe Research on Tuesday, September 29.
    Perez Hilton Is Racist? Kanye West In CRISIS! And…

    Perez Hilton Is Racist? Kanye West In CRISIS! And…

    However, sources have told Billboard that "the two men's companies will continue to work together" on other projects. I also asked my last manager to come work full time for Yeezy of course the last lawyer and manager said no.
    Audi to Recall 1.2 Million Vehicles Over Coolant Pump Fire Risk

    Audi to Recall 1.2 Million Vehicles Over Coolant Pump Fire Risk

    Previously, last year Audi recalled several vehicles for some software update and dealers did the software update. Audi recently decided that coolant pumps must be replaced to fully address the safety concerns.
  • Malaysian police release photo of one suspect in Palestinian's shooting

    Malaysian police release photo of one suspect in Palestinian's shooting

    With the death, Ahmed Abu Hussein became the second journalist to be fatally shot during weeks of Palestinian border protests. Abu Hussein's death brought the toll of Palestinians in Gaza killed by Israeli fire since March 30 to 41.
    Iron Spider Suit Confirmed For Spider-Man PS4

    Iron Spider Suit Confirmed For Spider-Man PS4

    Now, the video is back up again, right around Avengers: Infinity War's theatrical release. We'll also look into how the film will impact Avengers: Infinity War .
    4th synthetic marijuana-related death reported in IL

    4th synthetic marijuana-related death reported in IL

    Francis after reportedly using the synthetic cannabinoids, more commonly known as synthetic marijuana, "Spice" or "K2". High doses of vitamin K, up to 30 tablets a day for up to six months, can help restore the blood's ability to clot.
  • Kuwait expels Philippine envoy amid tensions over domestic workers

    Kuwait expels Philippine envoy amid tensions over domestic workers

    He stressed that the mission did not have the slightest intention of insulting Kuwait and its people or violating its sovereignty. The source expressed regret over such practices which could harm friendly relations between the two countries.
    TSB admits its internet banking woes are not over

    TSB admits its internet banking woes are not over

    On Wednesday some users said the system was now so slow it was almost unusable. "I spent an hour and a half to make one payment". On Wednesday, the bank's boss Paul Pester tweeted: "Our mobile banking app and online banking are now up and running".
    Credit Suisse posts first-quarter profit beat

    Credit Suisse posts first-quarter profit beat

    Pre-tax income was up a strong 59 per cent compared with a year ago, or 33 per cent on the previous quarter (Q4, 2017). Excluding investment banking and capital markets, all divisions posted higher-than-expected adjusted pre-tax profits.

Most liked

Clouds above Uranus smell like farts and rotten eggs, Oxford researchers declare
The researchers say these differences in atmospheric composition shed light on questions about the planets' formation and history. A new space study reveals that the planet of Uranus smells like farts and rotten eggs, according to the University of Oxford.

Beyond: Two Souls, Rayman Legends lead PS Plus lineup for May
Beyond: Two Souls is the headliner for this month, which is the PS4 relaunched version of the game. It's well worth having a browse, as there are hundreds of games included across PS4, PS3, and Vita.

Infinity War's Iron Spider Suit Coming to Marvel's Spider-Man!
By the end of that film, he found value in his brand of webslinging, and perhaps would rather return to that kind of crimefighting after the two-part Avengers epic.

Amber Rudd: I realized scope of 'Windrush' migration scandal only 'very recently'
A government source rejected press reports of a row between the two, saying they had had "a cordial and friendly exchange". Mr Johnson first floated the idea of an amnesty for some illegal immigrants when he was Mayor of London.

Melania Trump's head-turning white hat steals the show
It wasn't long before the hat became a viral sensation , trending under the hashtag #MelaniaHat. "That is more than a hat". He did his best to be subtle, but each time Melania slipped out of his grasp, he tried to needle his way back in.

Toronto Blue Jays vs. Boston Red Sox
Boston are 10-2 in their last 12 Wednesday games and are 9-2 in their last 11 road games and are 17-4 in their last 21 overall. That was about the only stumble for the Rockies in a game delayed 46 minutes by rain on a 37-degree evening.

North Korea must get rid of its nukes
Chinese seismologists concluded that the site part-collapsed after last year's massive hydrogen bomb test. The second study, however, did not determine whether the site was unusable or leaking radiation.

Belgium declares video game loot boxes illegal
And really, it's not even that the act itself is illegal, it's that doing so without a license is illegal. The regulator investigated ten video games that featured loot boxes and were available to Dutch players.

Manhunt Underway for Man Who Killed Maine Sheriff's Deputy
Sheriff Dale Lancaster called Cole, a 13-year veteran of the department, an "outstanding employee, one of the finest deputies". He is described as about 5 feet 6 inches tall, 120 pounds with brown hair with the sides shaved and a pony tail on top.

Trump's Budget Director Admits Giving Access To Lobbyists Who Paid Him
The agency, on its website , still calls itself the Consumer Financial Protection Bureau. But we will no longer go beyond that mandate.

Invests $3.97 Million in Celgene (NASDAQ:CELG)
After $1.92 actual EPS reported by Thor Industries, Inc. for the previous quarter, Wall Street now forecasts 42.19% EPS growth. The rating was maintained by Stifel Nicolaus on Monday, January 8 with "Buy". (NASDAQ:PEP) rating on Tuesday, September 5.

TSX retreats as oil prices fall, United States yields climb
Despite the positive quarterly report, the shares of M3 fell by 6.83% after the corporation downgraded its annual profit forecast. In Asia, share markets were trading lower on Wednesday in morning session, following an overnight drop in United States stocks.

Sonic Mania Plus Launches on July 17th
Sonic Mania was developed by Christian Whitehead, Headcannon, and PagodaWest Games in collaboration with Sonic Team. Without a physical release, Sonic Mania sales reaching over 1 million for a digital-only title is very impressive.

Here's How Mississauga is Honouring Victims of the Toronto Van Attack
Two South Koreans were also among the victims, according to the South Korean news agency Yonhap, which cited the foreign ministry. Minassian lives in the Toronto suburb of Richmond Hill and LinkedIn profile described him as a student at Seneca College.

Fleetwood Mac is returning to Lincoln
Some of their biggest hits include "Go Your Own Way", "The Chain", "Landslide" and "Rhiannon". Buckingham and the band parted ways earlier this month .