Tag: National Government Debt/Bond Markets

2024 Could Be the Year of the Yen
Money

2024 Could Be the Year of the Yen

The Japanese yen has been one of the worst performing currencies of the past couple of years. It could do better in 2024.The yen has lost around 20% against the dollar since the end of 2021, underperforming other major currencies. Japan’s central bank kept its ultralow interest rates while most of its peers have been raising rates aggressively. Higher yields outside of Japan have driven the currency lower and lower.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Waving a Red Flag at Bond Bulls
Money

Waving a Red Flag at Bond Bulls

The drop in long-term rates might seem excessive, but as long as investors’ expectation of low inflation readings isn’t proven wrong, it could continue.
Stocks, Bonds Soar After Inflation Data
Money

Stocks, Bonds Soar After Inflation Data

Updated Nov. 14, 2023 6:29 pm ETAn autumn stock-market rally accelerated Tuesday after fresh data showed that inflation cooled more than expected, powering big gains across stocks and government bonds.Consumer prices were unchanged in October from the previous month and up 3.2% from a year ago, less than what economists surveyed by The Wall Street Journal had forecast. The figures helped reassure investors that the Federal Reserve is likely done raising rates and put a soft landing for the U.S. economy in view.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Stocks, Bonds Soar After Inflation Data
World

Stocks, Bonds Soar After Inflation Data

Updated Nov. 14, 2023 6:29 pm ETAn autumn stock-market rally accelerated Tuesday after fresh data showed that inflation cooled more than expected, powering big gains across stocks and government bonds.Consumer prices were unchanged in October from the previous month and up 3.2% from a year ago, less than what economists surveyed by The Wall Street Journal had forecast. The figures helped reassure investors that the Federal Reserve is likely done raising rates and put a soft landing for the U.S. economy in view.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Hackers Hit Wall Street Arm of Chinese Banking Giant ICBC
Money

Hackers Hit Wall Street Arm of Chinese Banking Giant ICBC

Updated Nov. 10, 2023 8:03 am ETA U.S. subsidiary of China’s biggest bank was hacked this week, threatening a temporary logjam for some trades in the Treasury bond market.ICBC Financial Services, a New York-based entity owned by the Industrial and Commercial Bank of China, was the victim of a ransomware attack on Wednesday. The unit largely focuses on clearing, which means ensuring that transactions previously agreed by traders go through, and on lending and borrowing through repurchase agreements—a form of collateralized funding that forms a vital part of the financial system. Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Three Concerns Facing Markets: Economy, Government Spending, the Fed
Money

Three Concerns Facing Markets: Economy, Government Spending, the Fed

Wednesday provided a perfect demonstration of the three most important issues facing markets: the economy, government spending and the Federal Reserve.Ten-year Treasury yields posted their third-biggest daily drop since March, when Silicon Valley Bank failed. Investors put equal weight on the three issues—knocking 0.05 percentage point off the yield after each of three events—as their worries eased about the pace of growth, the scale of government bond issuance and how long the Fed will keep rates high.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Three Concerns Facing Markets: Economy, Government Spending, the Fed
World

Three Concerns Facing Markets: Economy, Government Spending, the Fed

Wednesday provided a perfect demonstration of the three most important issues facing markets: the economy, government spending and the Federal Reserve.Ten-year Treasury yields posted their third-biggest daily drop since March, when Silicon Valley Bank failed. Investors put equal weight on the three issues—knocking 0.05 percentage point off the yield after each of three events—as their worries eased about the pace of growth, the scale of government bond issuance and how long the Fed will keep rates high.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Fed Pause Helps Treasury Yields Retreat and Stocks Climb
Money

Fed Pause Helps Treasury Yields Retreat and Stocks Climb

Many investors on Wednesday looked to the Federal Reserve for hints about whether this autumn’s unusual ascent in Treasury yields would help finish America’s inflation fight. The central bank’s message: maybe. In the tug of war between low-risk government debt and higher-risk equities, that was enough of a signal to push stocks higher Wednesday. The Dow Jones Industrial Average rose 0.7%, or 222 points, while the tech-heavy Nasdaq Composite added 1.6%. The S&P 500 increased 1.1%, led by the information-technology and communication services sectors. Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
The Money Has Stopped Flowing in Commercial Real Estate
Money

The Money Has Stopped Flowing in Commercial Real Estate

Commercial real-estate lending is shrinking to historically low levels, threatening a rise in defaults on expiring debt and a sharp decline in new construction of warehouses, apartments and other property types.Banks, insurance companies and other commercial property lenders have been cutting back since the first half of 2022 when the Federal Reserve began increasing interest rates and recession concerns intensified. But creditors have been even more reluctant to make new loans as Treasury bond yields have soared since early August.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8