Asian share markets eased as a spike in global bond yields soured sentiment toward richly priced tech stocks, while a stampede out of crowded positions in oil caused the sharpest setback in months
The Indian bond market, which has been following the rise in US yields of late, should be able to temper its demand for higher yields
The latest factsheet shows that SBI's Dynamic Bond Fund's cash holding rose to 32.5% as of the end of January, compared with 8.4% at the end of June
Amazon.com Inc rose 1.4% and Tesla Inc added 3.7%, with the two companies giving the greatest lift to the S&P 500
Yields of perpetual bonds issued by State Bank of India and Bank of Baroda, for instance, have gone up by as much as 80-90 basis points (bps), and top recommendation lists of most managers
The benchmark yield surged to 1.676%, the highest level since February 2020
Weakness in index heavyweight Reliance Industries and banking and financial stocks was what dragged indices lower even as IT stocks, without much success, tried to cushion the fall
Besides redemption pressure in debt market, it will make fund raising difficult for PSBs
Spreads on five- and 10-yr rupee corporate bonds diverging
The bloc's fiscal support is also modest compared to the $1.9 trillion relief package approved by the United States Congress
Five-year interest-rate swaps jumped 63 basis points in February, reflecting growing expectations of a tighter monetary policy
RBI sold some of 10-year debt at 6.22 per cent on Friday, compared with about 6 per cent in previous auctions
NASDAQ futures rose 1.6% and S&P 500 futures 0.8%
Chinese stocks posted their biggest decline in seven months
The markets have largely taken to a downward trend amid high bond yields in the US
While policy makers welcome a modest rise in bond yields as a signal of confidence in the economic outlook, they worry an unchecked jump would undercut recoveries
Shares fell for a second straight session on Friday
Asian shares fell Thursday, tracking a decline on Wall Street as another rise in bond yields rattled investors who worry that higher inflation may prompt central banks to raise ultra-low interest rates. Benchmarks were lower in most major markets and the dollar rose against the Japanese yen. Shares have yoyo'd recently with fluctuations in bond yields. When yields rise quickly, as they have in recent weeks, it forces Wall Street to rethink the value of stocks. Technology stocks are most vulnerable to this reassessment after having soared during the pandemic, making them look pricier than the rest of the market. US government bond yields rose Wednesday after easing a day earlier. The yield on the benchmark 10-year Treasury note was steady at 1.47 per cent early Thursday. The dial ticks back to rising bond yield concerns, between that and the broad risk-on mood derived from the global economic recovery, Jingyi Pan of IG said in a report. She noted that stocks more affected by ups an
Another rise in bond yields rattled investors
Higher U.S. Treasury yields threatened gold's appeal as an inflation hedge as they increase the opportunity cost of holding bullion