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☆ Big central banks hit pause, with rate cuts far off
▼ + stars: | 2023-10-26 | by ( ) www.reuters.com time to read: +5 min

On Oct. 23, Fed Chair Jay Powell said a strong economy and tight jobs market could warrant more rate rises. Interest rate futures show traders believe the BoE will not cut rates, now at their highest since 2008, until at least June 2024. "The Governing Council’s past interest rate increases continue to be transmitted forcefully into financing conditions," the ECB said, adding it would follow a "data-dependent" approach and future decisions would be based on incoming data. Prime Minister Jonas Gahr Stoere told parliament last week interest rates may have peaked. Reuters Graphics Reuters Graphics8) AUSTRALIAThe Reserve Bank of Australia held rates steady at 4.1% for a fourth meeting in October.

Persons: Jonathan Ernst, Jay Powell, BoE, Jonas Gahr Stoere, Michele Bullock, Naomi Rovnick, Harry Robertson, Alun John, Yoruk Bahceli, Samuel Indyk, Chiara Elisei, Kripa Jayaram, Pasit, Riddhima, Sumanta Sen, Vineet, Amanda Cooper, Giles Elgood Organizations: . Federal, REUTERS, European Central Bank, Federal Reserve, Bank of England, UNITED, Reuters, Reserve Bank of New Zealand, BRITAIN, Bank of Canada, BoC, ECB, Norges Bank, Reuters Graphics Reuters, Reserve Bank of Australia, Bank of Japan, Thomson Locations: Washington, Japan, hawkish, dovish, NORWAY, SWEDEN Sweden, SWITZERLAND, Swiss, Gaza, JAPAN

☆ Asian stocks slump to 11-mth lows as higher-for-longer rate fears persist
▼ + stars: | 2023-10-26 | by ( Xie Yu | ) www.reuters.com time to read: +4 min

Australian shares fell to a one-year low, as stronger-than-expected third-quarter inflation data raised bets that the central bank might raise rates next month. In the currency markets, the dollar index hit a two-week high of 106.77. By 0300 GMT the yen was trading at a one-year low of 150.43 per dollar. The Australian dollar fell to an almost one-year low of $0.6271 in morning trade. The New Zealand dollar also hit a nearly one-year low at $0.5776.

Persons: Androniki, Ben Luk, Seng, Brent, Gold, Xie Yu, Simon Cameron, Moore Organizations: Nikkei, REUTERS, Japan's Nikkei, Treasury, Multi, State Street Global, U.S, New Zealand, Thomson Locations: Tokyo, Japan, HONG KONG, U.S, Asia, Pacific, China, Hong Kong, Europe

Reuters GraphicsThe Tel Aviv Inter-Bank Offered Rate, or TELBOR , a proxy for interest rate expectations, shows markets are now pricing in just over 50 bps of rate cuts over the next 12 months. "We thought the market was overreacting and exaggerating a rate cut in the (Oct. 23) decision, during the war," Bank Hapoalim's Shafrir said. The central bank's own economists project 50-75 bps of rate cuts in the next year. Prior to the war, markets had predicted that the benchmark rate would be lowered by at least 100 bps through 2024 as inflation returned to its target range. Israel's next rate decision is due on Nov. 27 with markets currently expecting rates to be held, and the three-month TELBOR rate pointing to a 25 bps cut in early 2024.

Persons: Violeta Santos Moura, Morgan Stanley, Georgi Deyanov, Modi Shafrir, Amir Yaron, Andrew Abir, Shafrir, Yaron, Anatoliy Shal, Shal, Steven Scheer, Karin Strohecker, Sumanta Sen, Kirsten Donovan Organizations: REUTERS, Palestinian, Hamas, Bank of Israel, Bank Hapoalim, Reuters, Tel Aviv Inter, Monday, P Global Market Intelligence, Thomson Locations: Israel's, Gaza, Israel, LONDON, Jerusalem, London

☆ Santander tops forecast as strong Europe offsets weaker US
▼ + stars: | 2023-10-25 | by ( Jesús Aguado | ) www.reuters.com time to read: +4 min

In Europe, net profit jumped 64% year-on-year in the quarter, while in South America it fell 7%. In Spain, the bank's biggest market, net profit surged almost 60%, while NII jumped 56%. In the UK, net profit rose 5.7% year-on-year in the quarter. In Brazil, its second-biggest market, net profit fell 8.9%, though NII rose 3.3%, reflecting an improvement in trends. Net profit in the United States fell 50.4% on higher funding costs in the auto business while provisions rose 49%.

Persons: Violeta Santos Moura, Ana Botin, JP Morgan, NII, Jesús, David Holmes, Mark Potter Organizations: Santander, REUTERS, Revenues, Thomson Locations: Boadilla del Monte, Madrid, Spain, MADRID, Spanish, Europe, United States, America, South America, SPAIN, BRAZIL, Portugal, Poland, Brazil

☆ French payment company Worldline slump nearly 40% as it cuts targets
▼ + stars: | 2023-10-25 | by ( ) www.reuters.com time to read: +1 min

Oct 25 (Reuters) - Shares in Worldline (WLN.PA) slumped nearly 40% on Wednesday after the French payment company cut its full-year targets as the economic slowdown hurt its business in key markets including Germany. The group also said it had cut ties with some of its merchants to reduce risks "in light of an increase in cybercrime." The group now sees organic sales growth in 2023 of between 6% and 7%, compared with 8% to 10% previously. It also forecast a 150 basis point drop in its operating margin before depreciation and amortization for 2023, compared with a previous forecast of a 100 bps increase. "Worldline missed sales estimates in every division...These results are a disappointment in terms of the full-year miss and also that long-term targets have been discarded," JPMorgan analysts said.

Persons: Worldline, Lina Golovnya, Silvia Aloisi Organizations: JPMorgan, Thomson Locations: Germany

After 525 basis points of interest rate hikes, financial conditions are now the tightest in a year, and biting. JPMorgan strategists estimate that the impact on GDP from tightening financial conditions takes anywhere from one to two years to be felt. Reuters Image Acquire Licensing RightsReuters Image Acquire Licensing RightsThe renewed weakness of U.S. regional bank shares is one of them. Reuters Image Acquire Licensing RightsReuters Image Acquire Licensing RightsBNP Paribas analysts reckon the impact on GDP growth from tighter financial conditions recently equates to a 40 basis point rate hike. Around a third of the bank's financial conditions index rise since April is from higher bond yields.

Persons: Brendan McDermid, Goldman Sachs, Torsten Slok, Morgan Stanley, Jerome Powell, Jamie McGeever, Andrea Ricci Organizations: New York Stock Exchange, REUTERS, Rights, Fed, Treasury, Wall, JPMorgan, National Federation of Independent, Reuters, Thomson Locations: New York City, U.S, Rights ORLANDO , Florida, October's

Savings accounts are low interest rate-bearing deposits offered by Indian banks, forming a third of their total deposits. Public sector banks offer interest rates between 2.70% to 4% on savings deposits, while large private banks offer rates between 3% to 4.50%. Savings deposits rate of banks vs RBI's repo rateThe RBI has been nudging banks at meetings to raise savings deposit rates and may need to push them again if required, the same source said. The RBI said in its monetary policy report that while the increase in term deposit rates in the current tightening cycle has exceeded that in lending rates, savings deposit rates have remained almost unchanged. Yes Bank (YESB.NS), Kotak Mahindra Bank (KTKM.NS) and IndusInd Bank (INBK.NS) are among lenders that have recently said they have no plans to raise savings deposit rates.

Persons: Anushree, Siddhi Nayak, Swati Bhat, Nivedita Organizations: Reserve Bank of India, REUTERS, Rights, Savings, Reuters, Yes Bank, Kotak Mahindra Bank, IndusInd Bank, Siddhi, Thomson Locations: New Delhi, India, Rights MUMBAI

☆ Morning Bid: Markets juggle 5% yields and 150 yen
▼ + stars: | 2023-10-23 | by ( ) www.reuters.com time to read: +5 min

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 11, 2023. REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsA look at the day ahead in U.S. and global markets from Mike DolanPartly unwinding pre-weekend safety hedges related to the Middle East conflict, world markets are back focused on some critical macro priced levels and milestones that may once again define the week. The dollar retained its bid as a result and continued to probe the 150 yen level many suspect the Bank of Japan will be keen to protect against with open-market yen buying. But even these megacaps are still in thrall to the worrying squeeze in U.S. bond markets and the breach of the 5% threshold on 10-year tenors on Monday. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Persons: Brendan McDermid, Mike Dolan, Goldman Sachs, thrall, that's, That's, Sergio Massa, Javier Milei, Maria Corina Machado, Hess, Berkley, Brown, Susan Fenton Organizations: New York Stock Exchange, REUTERS, Bank of Japan, European Central Bank, Industrial, China, Goldman, Microsoft, Meta, Federal Reserve, Economy, Banco BBVA Argentina, Peronist, Massa, Venezuelan, Chevron, Exxon, Natural Resources, Brown, Cadence, Packaging Corp of America, Fed, Bank of Israel, Trade Organization, Treasury, Reuters, Thomson Locations: New York City, U.S, Gaza, China, Taiwan, outflows, 50bps, York, America, Venezuela, Geneva

☆ Ten-year U.S. Treasury yield hits 5%
▼ + stars: | 2023-10-23 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsLONDON, Oct 23 (Reuters) - The yield on the benchmark 10-year U.S. Treasury note rose above 5.0% on Monday, hitting the July 2007 milestone that it briefly attempted to scale last week. The run-up in yields on the 10-year Treasury bond, seen as a safe-haven in times of economic uncertainty and a benchmark for borrowing costs around the world, has been driven by investors pricing in stronger U.S. growth as well as fiscal slippage. The 10-year yield touched 5.004% on Monday, up around 8 basis points (bps) on the day. Treasury borrowing costs have climbed, and a divided Congress has bickered over next year's spending bills while using stopgap measures to avert a shutdown of government operations. The yield on the two-year U.S. Treasury was last up 4 bps at 5.125%.

Persons: Dado Ruvic, Jerome Powell, Joe Biden, Kyle Rodda, Vidya Ranganathan, Harry Robertson, Kevin Buckland, Neil Fullick, Alun John Organizations: REUTERS, Treasury, U.S, Thomson Locations: U.S, Ukraine, Israel

☆ Breaking down the complicated and erratic relationship between stocks and bonds
▼ + stars: | 2023-10-21 | by ( Michael Santoli | ) www.cnbc.com time to read: +9 min

At Friday's close of 4224 on Friday, the S & P 500 is off 8% from the July high, with its equal-weighted version down 11%. .SPX YTD mountain S & P 500 YTD Yet the S & P was also at about the current level on Sept. 22, when the 10-year was a half-percentage-point lower, as well as on June 2, when it was at 3.7%. It's taken as a given in most corners of the investment business that higher rates available on bonds serve mechanically to compress equity valuations. Which is how the stock market finds itself here, with real or incipient breakdowns in regional banks and transportation stocks, the median S & P 500 component down for the year. The S & P 500 has gone on to drop a bit further, rally weakly and then roll back toward a five-month low.

Persons: James Carville, Bill Clinton, Stocks, it's, It's, Savita Subramanian, Jay Powell, LEI, Bond Organizations: Treasury, Bank of America, Group, Bloomberg News Locations: Friday's, corporates, Israel

The 40-year bond bull market - a slow-inflating bubble like any other to some people - has crashed. Bank of America chart on survey of global funds' bond positioningBond Multiverse Returns Flip Positive2008... OR 2000? Of course, bond bubbles and bursts - at least for top-rated sovereigns - are not same as their equity counterparts, even if the short-term performance of bond funds seems to ape them. But for bond funds praying for a shorter-term price performance pickup, the situation looks nervier. With such an ephemeral variable at work, picking a durable turn in the battered bond market may prove fiendishly difficult.

Persons: Jason Lee, That's, Fed's, Olivier Davanne, midyear, Davanne, Mike Dolan Organizations: Hong, REUTERS, Treasury, U.S, Bank of America's, Federal Reserve, of America, Bloomberg, Invest, Reuters, Thomson Locations: Hong Kong, Paris

☆ China leaves benchmark lending rates unchanged as expected
▼ + stars: | 2023-10-20 | by ( ) www.reuters.com time to read: +3 min

A woman walks past the headquarters of the People's Bank of China (PBOC), the central bank, in Beijing, China September 28, 2018. REUTERS/Jason Lee/File Photo Acquire Licensing RightsSHANGHAI/SINGAPORE, Oct 20 (Reuters) - China kept its benchmark lending rates unchanged at the monthly fixing on Friday, matching market expectations, as a set of economic data suggested the economy is stabilising and a weaker yuan constrained further monetary easing. The one-year loan prime rate (LPR) was kept at 3.45%, while the five-year LPR was unchanged at 4.20%. Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. China cut the one-year benchmark lending rate in August but surprised markets by keeping the five-year rate unchanged.

Persons: Jason Lee, Li Gu, Tom Westbrook, Edmund Klamann, Jacqueline Wong Organizations: People's Bank of China, REUTERS, Rights, TD Securities, Barclays, Thomson Locations: Beijing, China, Rights SHANGHAI, SINGAPORE

REUTERS/Kai Pfaffenbach/File Photo Acquire Licensing RightsHONG KONG/LONDON, Oct 17 (Reuters) - Bond yields rose on Tuesday and stocks steadied as markets continued to retrace last week's moves to safe-haven assets, focusing on corporate earnings prospects and the resilience of the U.S. economy rather than tensions in the Middle East. Benchmark 10-year bond yields in the U.S. and Germany (Bunds) rose around 5 basis points (bps) on Tuesday having risen 5-8 bps Monday - bond yields move inversely to prices. Israel's shekel remained on the weak side of the 4 per dollar level it softened to for the first time since 2015 on Monday. Russian President Vladimir Putin on Tuesday arrived in Beijing to meet Chinese President Xi Jinping even as the war in Ukraine raged on. If investors do not receive the coupon payment, all of Country Garden's offshore debts will be deemed in default.

Persons: DAX, Kai Pfaffenbach, Banks, BNY, Goldman Sachs, We're, Jorge Garayo, Joe Biden, Israel, Israel's shekel, Vladimir Putin, Xi Jinping, BoE, Gold, Brent, Selena Li, Alun John, Shri Navaratnam, Ed Osmond, Alex Richardson Organizations: Deutsche, REUTERS, Bank of America, Treasury, Bund, Societe Generale, U.S, Israel, Hamas, Iran's, Tuesday, HK, Bank of England, Swiss, Venezuela, Thomson Locations: Frankfurt, Germany, HONG KONG, U.S, Iran, Gaza, Beijing, Ukraine, Friday's, Washington, Israel, Hong Kong, London

SINGAPORE/LONDON Oct 13 (Reuters) - Global shares slipped on Friday while assets considered to be safer havens such as gold and U.S. Treasuries rose as traders retreated from market risk as conflict in the Middle East intensified. MSCI's broadest index of global equities (.MIWD00000PUS) fell 0.3%, while Europe's Stoxx 600 share index (.STOXX) slid 0.4%. Brent crude oil futures jumped 2.7% on Friday to $88.29 a barrel, on track for a 4.3% advance this week. Spot gold gained 0.8% on Friday to $1,885 an ounce, set for a gain of 2.4% over the week. The risk-off mood also prevailed in the currency market, with the dollar holding on to most overnight gains.

Persons: Trevor Greetham, Treasuries, Ankur Banerjee, Naomi Rovnick, Edwina Gibbs, Susan Fenton, Kim Coghill Organizations: Asset Management, Federal Reserve, Treasury, Bank of Japan, Nikkei, Thomson Locations: SINGAPORE, Middle, Gaza, Hamas, Ashkelon, Israel, Brent, U.S, Baltic, Asia, Japan, MIAPJ0000PUS

☆ Dollar gains after US consumer prices rise more than expected
▼ + stars: | 2023-10-12 | by ( Herbert Lash | ) www.reuters.com time to read: +4 min

NEW YORK, Oct 12 (Reuters) - The dollar rose sharply on Thursday after U.S. consumer prices rose more than expected in September, lifted by an elevated cost of rent that raised the prospect of the Federal Reserve keeping interest rates high for some time. The consumer price index increased 0.4% last month, with a 0.6% jump in the cost of shelter accounting for more than half of the rise. The dollar rose more than 1% against sterling, and the Australian and New Zealand dollars. Owners' equivalent rent, a measure of the amount homeowners would pay to rent or would earn from renting their property, rose even though non-official sources show a decline in rental prices. Thursday's CPI release came after Wednesday's mixed report on U.S. producer prices, and minutes from the Fed's September meeting.

Persons: Douglas Porter, Bipan Rai, Thierry Wizman, Wizman, BoE, Wednesday's, Herbert Lash, Alun John, Ankur Banerjee, Emelia Sithole, Mark Potter, Jonathan Oatis Organizations: Federal Reserve, Labor, BMO Capital Markets, Reuters, New, CIBC Capital Markets, Fed, Bank of England, CPI, Swiss, Thomson Locations: Oakville, Canada, New Zealand, North America, Toronto, New York, London, Bengaluru, Singapore

☆ Hedge funds expected to ramp up returns on higher rates - BNP survey
▼ + stars: | 2023-10-11 | by ( Nell Mackenzie | ) www.reuters.com time to read: +3 min

REUTERS/Carlo Allegri/File Photo Acquire Licensing RightsLONDON, Oct 11 (Reuters) - Investors expect hedge funds to produce higher returns with the prospect of interest rates staying higher for longer, a BNP Paribas [RIC:RIC:BNPPL.UL] investor survey showed on Wednesday. Investors now expect hedge funds to return an average of 9.75% annually within an average of 19 months, up from 6.85%, according to the survey. However, hedge funds themselves think this will take longer, up to 29 months, the survey showed. BNP Paribas said historical evidence shows hedge funds tend to perform well in higher and stable interest rate environments and less so when rates are lower. BNP Capital Introduction Group surveyed 82 hedge fund managers in what it called the "summer" of 2023.

Persons: Carlo Allegri, Michael Oliver Weinberg, “, ”, Weinberg, Nell Mackenzie, Dhara Ranasinghe, Kirsten Donovan Organizations: New York Stock, REUTERS, BNP, RIC, Investors, Group, Thomson Locations: Manhattan, New York City , New York, U.S

☆ Yields fall, stocks jump after Fed official comments; oil eases
▼ + stars: | 2023-10-10 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

[1/3] Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., January 10, 2022. Atlanta Fed Bank President Raphael Bostic on Tuesday said the U.S. central bank does not need to raise rates any further, and sees no recession ahead. Late on Monday, top-ranking Fed officials indicated that rising yields on long-term U.S. Treasury bonds, which directly influence financing costs for households and businesses, could keep the Fed from further increases in its short-term policy rate. U.S. Treasury yields fell on the comments but also partly in reaction to continuing violence in the Middle East. In late morning trading, U.S. 10-year yields were last down 10.6 basis points (bps) at 4.676%.

Persons: Brendan McDermid, Raphael Bostic, Israel, Stan Shipley, Brent, shekel, Amanda Cooper, Kane Wu, Stella Qiu, Christina Fincher, Chizu Nomiyama, Jonathan Oatis Organizations: New York Stock Exchange, REUTERS, Companies, Treasury, Federal, Nasdaq, Atlanta Fed Bank, Cash Treasury, Columbus Day U.S, Fed, ISI, Dow Jones, U.S, Garden Holdings, HK, Thomson Locations: New York City, U.S, East, Israel, Gaza, New York, London, Hong Kong, Sydney

☆ Stocks ride wave of risk appetite; Israel conflict rages on
▼ + stars: | 2023-10-10 | by ( Amanda Cooper | ) www.reuters.com time to read: +4 min

[1/2] The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, October 9, 2023. REUTERS/Staff/File Photo Acquire Licensing RightsLONDON, Oct 10 (Reuters) - Global stocks rose on Tuesday, as a wave of risk appetite swept through markets after Federal Reserve officials signaled the recent yield surge could justify caution on interest rates, while oil eased, but violence in Israel made for nervy trading. "Based on Monday's comments from the Fed, the market is starting to think that the central bank does take greater notice of bond yields after all," ING strategist Chris Turner said. "However, we suspect that this may not be a defining story for the bond market in that no central bank likes being backed into a corner over what bond yields mean for monetary policy." Oil prices eased after climbing more than 4% on Monday.

Persons: Treasuries, Kallum Pickering, Chris Turner, Brent, Kane Wu, Stella Qiu, Kim Coghill, Christina Fincher, Chizu Organizations: REUTERS, Staff, Federal, Hamas, Fed, ING, Garden Holdings, HK, Thomson Locations: Frankfurt, Germany, Israel, Europe's, U.S, Palestinian, Gaza, Hong Kong, Sydney

☆ Israel shekel sinks to lowest since 2016, default insurances soars
▼ + stars: | 2023-10-10 | by ( ) www.reuters.com time to read: +2 min

New Israeli Shekel banknotes are seen in this picture illustration taken November 9, 2021. The weekend attack and retaliatory strikes by Israel have claimed more than 1,500 lives, raising fears the region could face a prolonged wave of conflict and violence. Stocks, bonds and currencies of Israel and neighbouring countries such as Lebanon, Jordan and Egypt have come under severe pressure in recent days. The Bank of Israel announced on Monday it would sell up to $30 billion of foreign currency in the open market to stabilise the currency. Reporting by Karin Strohecker and Amanda Cooper; Graphic by Marc Jones, Editing by Christina FincherOur Standards: The Thomson Reuters Trust Principles.

Persons: Nir Elias, JPMorgan's Zafar Nazim, Karin Strohecker, Amanda Cooper, Marc Jones, Christina Fincher Organizations: REUTERS, P Global Market Intelligence, Bank of Israel, Reuters Graphics JPMorgan, Gulf Corporation, Key Tel, Thomson Locations: Israel, Lebanon, Jordan, Egypt, Gulf, Key Tel Aviv

☆ Middle East violence rattles markets, oil jumps
▼ + stars: | 2023-10-09 | by ( Reuters Staff | ) www.reuters.com time to read: +5 min

MARKET REACTION:- Oil prices surged, with Brent crude trading at $87.25 a barrel - up over 3% on the day. COMMENTS:MOHIT KUMAR, CHIEF EUROPE ECONOMIST, JEFFERIES, LONDON:“The coming days are likely to be driven by geopolitical risks, rather than fundamentals. “Second, OPEC countries do have spare capacity that they restrict willingly to maintain oil price at above $80 (per barrel), but they don’t necessarily think of tripling oil prices – which would only accelerate the energy transition. “This being said, potential retaliation against Tehran is a serious upside risk for oil prices. We will keep an eye on developments, but don’t speculate on a full-blast rise in oil prices for now.”

Persons: Mohammed Salem, Israel’s shekel, MOHIT KUMAR, JEFFERIES, ”, ” CHRIS BEAUCHAMP, Brent, WTI, CAROL KONG, JPY, ” MICHAEL HEWSON, ALVIN TAN, Blinken, “, ” IPEK OZKARDESKAYA, Israel Organizations: Oil, REUTERS, Brent, U.S, Treasury, British Airways, LONDON, Russo, COMMONWEALTH BANK OF, CMC, U.S ., OF, OF ASIA FX, RBS, SWISSQUOTE BANK Locations: Israel, Gaza, Egypt, Yom, EUROPE, Iran, Ukrainian, SYDNEY, Asia, Japan, Straits, Hormuz, OF ASIA, ” “, GENEVA, OPEC, U.S, Tehran

☆ India central bank keeps key rate steady; liquidity measures in focus
▼ + stars: | 2023-10-06 | by ( ) www.reuters.com time to read: +1 min

A Reserve Bank of India (RBI) logo is seen inside its headquarters in Mumbai, India, April 6, 2023. REUTERS/Francis Mascarenhas Acquire Licensing RightsMUMBAI, Oct 6 (Reuters) - The Reserve Bank of India's key lending rate was held steady at a fourth consecutive policy meeting on Friday, as widely expected, with investors more focused on the regulator's liquidity management plan amid a resurgence in inflation. The country's monetary policy committee (MPC) kept the repo rate (INREPO=ECI) unchanged at 6.50%, in a unanimous decision. It has raised rates by 250 basis points (bps) since May 2022 in a bid to cool surging prices. High inflation has put the focus back on liquidity management amid the reduced ability to keep hiking rates at the risk of hurting growth and commentary and further measures, if any, are being closely monitored by market participants.

Persons: Francis Mascarenhas, Das, Swati Bhat, Sudipto Ganguly, Savio D'Souza Organizations: Bank of India, REUTERS, Rights, Reserve Bank of, Reuters, Thomson Locations: Mumbai, India, Rights MUMBAI

People walk past the main entrance of the Sri Lanka's Central Bank in Colombo, Sri Lanka March 24, 2017. The Central Bank of Sri Lanka (CBSL) lowered the standing deposit facility rate and the standing lending facility rate by 100 basis points each to 10% and 11%, respectively, it said in a statement. Sri Lanka, however, failed to reach an agreement with the IMF in its first review of the bailout package last month, due to a potential shortfall in government revenue. Even with policy loosening Sri Lanka could find it difficult to post (a 2% contraction) this year," said Udeeshan Jonas, chief strategist at equity research firm CAL Group. The central bank reiterated that it would like to see market interest rates come down further.

Persons: Dinuka, CBSL, Udeeshan Jonas, Thilina Panduwawala, Uditha Jayasinghe, Swati Bhat, Sam Holmes, Sudipto Ganguly Organizations: Sri, Central Bank, REUTERS, Rights, International Monetary Fund, Central Bank of Sri, IMF, CAL, Frontier Research, Bank Locations: Colombo, Sri Lanka, Lanka's, Central Bank of Sri Lanka, Sri, Lanka

A steepening yield curve is when the spread between long- and short-term bond yields widens. Either the long-term yield rises faster than the short-term yield - a bear steepener - or the short-term yield is falling more - a bull steepener. Bear steepenings of the benchmark two-year/10-year U.S. Treasury yield curve, when the curve is inverted, are rare. In some ways, a positive-sloping yield curve is the natural order of things. Graff reckons the bear steepening is almost over and the curve will struggle to get past -20 bps.

Persons: Warren Pies, Dario Perkins, Lombard's Perkins, Bond, Bill Gross, Goldman Sachs, Tom Graff, Graff, Jamie McGeever, Andrew Heavens Organizations: Treasury, 3Fourteen Research, TS Lombard, Federal Reserve, Reuters, Thomson Locations: ORLANDO, Florida, London reckons

Treasury yields later receded on a cooler-than-expected U.S. private payrolls report that helped stocks on Wall Street rebound from Tuesday's sharp sell-off. "The market was so over-sold that it was looking for a catalyst to rally on and found it in ADP." The yield on 10-year Treasury notes touched 4.884%, a fresh 16-year high, while 30-year Treasury yields rose above 5% for the first time since August 2007. REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsAustralian, Canadian and British government bond yields have also surged this week. Gold prices crept lower for the eighth consecutive session as elevated Treasury yields amid expectations that the Fed will keep rates higher for longer weighed on investor sentiment.

Persons: Kim Rupert, Rupert, Rhys Williams, Brendan McDermid, Kit Juckes, Brent, Herbert Lash, Tom Wilson, Tom Westbrook, Simon Cameron, Moore, Will Dunham, Mark Potter Organizations: Treasury, ADP, Management, Institute for Supply Management, Federal Reserve, Dow Jones, Nasdaq, Bank of Japan, New York Stock Exchange, REUTERS, Rights Australian, U.S ., Thomson Locations: San Francisco, Bryn Mawr , Pennsylvania, U.S, New York City, Asia, Pacific, Japan, Tokyo, Russia, London, Sydney

A calmer tone set in later on Wednesday, with bond yields retreating. In the U.S. Treasury market -- considered the bedrock of the global financial system -- 10-year yields have jumped as much as 20 basis points (bps) to 4.8% this week alone. Bond yields move inversely to prices, and many asset managers who had held bonds expecting prices to rally are now throwing in the towel. Australian and Canadian 10-year bond yields have surged over 20 bps each this week , , and British 30-year government bond yields hit a fresh 25-year high above 5% on Wednesday . , ,World stocks (.MIWD00000PUS) hit their lowest since April on Wednesday, and the cost of insuring exposure to a basket of European corporate junk bonds hit a five-month high, according to data from S&P Global Market Intelligence.

Persons: Bond, Juan Valenzuela, Artemis, Kevin McCarthy, Jason Lee, Michael Metcalfe, Vikram Aggarwal, that's, Everybody's, you've, Richard McGuire, McGuire, Dhara Ranasinghe, Naomi Rovnick, Alun John, Yoruk Bahceli, Chiara Elisei, Marc Jones, Andy Bruce, Kim Coghill, Toby Chopra Organizations: bund, U.S . Treasury, Federal Reserve, Reuters, ADP, U.S . House, Congress, Hong, REUTERS, Street Global Markets, P Global Market Intelligence, Jupiter, New York Fed, Rabobank, Thomson Locations: Treasuries, British, U.S, Hong Kong, London

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