Gold Holds Gains With Haven Demand and Lower Yields in Focus
Gold steadied after rising the most in more than two weeks on Thursday as investors sought safety from a stocks selloff in bonds, pushing down Treasury yields.
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Gold steadied after rising the most in more than two weeks on Thursday as investors sought safety from a stocks selloff in bonds, pushing down Treasury yields.
Barclays senior US economist Pooja Sriram said higher interest rates are a blunt tool that tighten financial conditions and hit rate-sensitive sectors such as housing and autos first. While rising Treasury yields and the bond selloff have added restraint, she said it is unclear whether conditions are restrictive enough. With oil prices rising again, further pressure on housing and auto demand could create uneven economic damage without resolving inflation. Sriram said the Fed’s approach, reflected in September meeting minutes, is focused on managing the risk that strong demand, persistent inflation or adverse supply shocks push prices higher. The Fed appears prepared to raise rates further, though she said a hike as soon as October is unlikely. (Source: Bloomberg)
April LaRusse, co-head of global client portfolio management at BNY Investments, says it is too early to confidently call a peak in Treasury yields. Speaking on "The Asia Trade," LaRusse says current market pricing for roughly three rate hikes looks excessive, leaving room for a relief rally if the Middle East conflict eases or labor market data weakens. (Source: Bloomberg)
Kazakhstan’s central bank is switching from being one of the world’s biggest buyers of gold to a seller, as high Treasury yields reinforce the need to rebalance its reserves.
Gold and silver slid as the dollar and Treasury yields climbed and Fed minutes pointed to another rate rise. US gold futures settled at US$4,140.70. The post Gold ETF Falls 1.7% as Fed Hike Bets Weigh | Gold & Silver, Oct 7 appeared first on The Rio Times.
The higher the wall of worry, the faster US stocks have climbed it, clocking its first record since August on Tuesday. But to Jim Paulsen, the cumulative pressure from $100 oil prices, 5% Treasury yields and an elevated dollar is yet to be felt in a major way.
Investors are sticking with emerging-market carry trades, even after a rare quarterly loss, betting the strategy will be able to weather Treasury yields at multi-decade highs
The benchmark KBW Bank Index shed as much as 2.4% to the lowest intraday since late May in Thursday trading, as investors assessed the impact to the economy and banks’ businesses from relentlessly climbing Treasury yields.
Thai bonds suffered their biggest monthly foreign outflows since March as surging Treasury yields and the prospect of interest-rate hikes dimmed the appeal of the nation’s debt.
Rufaro Chiriseri, head of fixed income for Europe at RBC Wealth Management, discusses the outlook for Treasury yields and Federal Reserve policy. "6% on the on the 30-year is not a level that seems to be wildly out of any possibility," Chiriseri tells Bloomberg Television. "We still expect that yields could still continue to trend higher from here." (Source: Bloomberg)
Bloomberg MLIV strategist Mark Cranfield warns 10-year Treasury yields could climb to 6% as Federal Reserve policy, elevated oil prices, and geopolitical tensions maintain upward pressure. (Source: Bloomberg)
Gold steadied, after advancing on Tuesday, as traders weighed a decline in oil prices that eased concerns over energy-led inflation against elevated Treasury yields.
Treasury yields are surging past 5%, threatening to push up borrowing costs on everything from mortgages and car loans to credit cards. Ruth Carson explains why the impact is being felt far beyond Wall Street and the US. (Source: Bloomberg)
The surge in Treasury yields has pushed yield gaps with emerging Asia bonds toward record levels, raising the risk of capital outflows from the region, according to strategists.
Emerging-market investors are for now sticking with local-currency sovereign debt as surging Treasury yields dim the appeal of dollar-denominated developing-nation bonds.