(Bloomberg) – Bond supply continued on Monday as government bond yields rose and sovereign debt in Australia and New Zealand slipped over concerns about faster inflation, dampening stock market optimism from positive vaccine news.
Benchmark 10-year government interest rates rose to their highest in about a year. A measurement of Asian stocks rose lower, erasing past gains amid a rise in metals that could increase price pressure. Janese shares outperformed other major markets. The S&P 500 and European futures fell after the US index fell on Friday.
Copper hit its highest level in more than nine years amid signs of global optimism. Crude oil rose to $ 60 per barrel. Barrel as the market assessed the fallout from the Great Freeze over Texas. Bitcoin broke another record over the weekend, spurring a rally in shares of Asian cryptocurrency stocks.
Government bonds have fallen on expectations vaccines, and more fiscal stimulus will spur a global economic recovery and fan inflation. In Israel, Pfizer Inc. shot. and the BioNTech SE Covid-19 bead to stop the vast majority of recipients from infection. Progress against the disease has helped stock and commodity markets this year, but investors are also asking whether the reflection trade will increase dividends to a point that will eventually hurt the petite risk.
“We’re still in a risk environment,” Adrian Zuercher, head of global asset allocation at UBS Wealth Management, told Bloomberg TV. “Everyone is playing the prospect of better economic growth and the prospect of more fiscal stimulus. It is normal for nominal interest rates to trend higher, equities to trade high and commodities based on a better economic outlook. ”
Read: Inflation Anxiety is Rewriting the Stock Market Playbook
U.S. lawmakers are also expected to make progress on a $ 1.9 trillion stimulus bill, and President Joe Biden’s administration may unveil a multi-trillion-dollar recovery package in March centered on infrastructure.
In Australia, the central bank resumed buying three-year securities to defend its interest rate target. Benchmark bonds also fell in New Zealand, whose currency was boosted by a sovereign credit rating upgrade before mating the advance.
Some important events to see this week:
Fed Chairman Jerome Powell delivers the central bank’s biannual monetary policy report to the Senate Banking Committee on Tuesday. EIA report on crude oil is out Wednesday. Korea-Korean monetary policy decision is out Thursday. Finance ministers and central bankers from the group of 20 meet almost on Friday. US Treasury Secretary Janet Yellen will be among the participants.
These are some of the key features of the markets:
Equities
S&P 500 futures fell 0.2% per share. 14.05 in Tokyo. The S&P 500 index fell 0.2% on Friday. Jan’s Topix index rose 0.7%. Australia’s S & P / ASX 200 index was flat. Hong Kong’s Hang Seng Index rose 0.3%. Shanghai Composite lost 0.1%. Euro Stoxx 50 futures fell 0.4%.
Currencies
The yen was 105.66 per. Dollar, down 0.2%. Offshore yuan was at 6.4616 per. Dollar, down 0.1%. The euro was at $ 1.2121. The Bloomberg Dollar Spot Index was flat.
Bonds
The yield on 10-year government bonds rose by around five basis points to 1.39%. Australia’s 10-year bond yield rose 18 basis points to 1.61%.
Raw materials
West Texas Intermediate crude rose 1.2% to $ 59.97 per barrel. Barrel, and gold was at $ 1,786.48 an ounce.
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