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Buckling bond market casts pall over stocks
  + stars: | 2023-07-07 | by ( Tom Westbrook | ) www.reuters.com   time to read: +3 min
Overnight, surprisingly strong partial figures on the U.S. labour market sent a selloff in bond markets into overdrive and pushed the S&P 500 stock index (.SPX) 0.8% lower. Three-year and ten-year Australian government bond yields each rose a dozen basis points on Thursday and a dozen more on Friday morning to hit decade highs. Maybe there has to be some reassessment given the resilience of a lot of economies to higher rates so far." Even well-anchored Japanese government bond yields rose on Friday. Gold , which pays no income, was under pressure from higher yields while trading flat at $1,911 an ounce.
Persons: Jack Chambers, payrolls, Goldman Sachs, HSI, Tom Westbrook, Edmund Klamann Organizations: Japan's Nikkei, Federal Reserve, ANZ, stoke, Private U.S, ADP, U.S, Reserve Bank, Thomson Locations: SINGAPORE, Asia, Pacific, Japan, Britain, Sydney, U.S, Hong Kong, South Korea, Australia
Markets remained fragile, with European bank stocks tumbling over 5% on Monday and U.S. banks set to open lower (.SX7P). Markets also moderated their view on UK rates and were pricing in a roughly 75% chance of a 25 bps hike when the Bank of England meets next week. Goldman Sachs said on Sunday the banking stress meant it no longer expected the Fed to hike rates next week. "It's not going to want to go clattering in with another 50 (bps hike) and see some other financial institution getting hosed." A new Fed bank funding scheme aimed at addressing some of Silicon Valley Bank's apparent problems with losses in its bond portfolio is expected to further help with stability for banks and bonds.
U.S. interest rate futures surged and a hard-running rally in short-term bonds extended, putting two-year Treasuries on course for their best three-day gain since Black Monday in 1987. "If (U.S. Fed Chair Jerome) Powell lifts interest rates next week, he will jeopardise this situation," he added. At 4.4098% they are also below the bottom end of the Fed funds rate window at 4.5% - a sign markets see rates' peak is near. "I think people are linking Silicon Valley Bank's problems with the rate hikes we've already had," said ING economist Rob Carnell. "If rates going up caused this, the Fed is going to mindful of that in futures," he said.
"Don't Worry Darling" is now available to buy ($25) or rent ($20) from Amazon, Vudu, and more. Check out the trailer for 'Don't Worry Darling'Florence Pugh ("Midsommar") plays the lead role of Alice opposite Harry Styles ("Dunkirk") as Jack. As of October 25, "Don't Worry Darling" has a low "38%" score on Rotten Tomatoes. How to watch 'Don't Worry Darling'"Don't Worry Darling" is now available to watch at home through digital retailers like Amazon Prime Video, Apple TV, Vudu, and YouTube. "Don't Worry Darling" is not based on a book, but rather a spec script originally written by Shane and Carey Van Dyke.
Following its exclusive theatrical window, "Don't Worry Darling" is expected to stream on HBO Max. Check out the trailer for 'Don't Worry Darling'Florence Pugh ("Midsommar") plays the lead role of Alice opposite Harry Styles ("Dunkirk") as Jack. As of September 23, "Don't Worry Darling" has a low "36%" score on Rotten Tomatoes. "Don't Worry Darling" has yet to receive an official streaming release date. "Don't Worry Darling" is not based on a book, but rather a spec script originally written by Shane and Carey Van Dyke.
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