Treasury Bond Auctions Have Been Ugly and Could Be ‘Canary in the Coal Mine’

China stimulus hopes are also helping as a slowdown in the world’s second-largest economy continues to hang over global markets and Asian trading in particular. China is considering raising its budget deficit for this year to issue some $137 billion of additional sovereign debt for spending to help the economy meet its growth target, Bloomberg reported this week, citing anonymous sources. Asian stocks experienced another day of buoyant trading amid ongoing hopes of government stimulus in China and as global equities broadly benefited from a retreat in bond yields. However, mining stocks and the big four banks contributed to the positive session. Stocks in the Asia-Pacific region mostly grew Wednesday, Oct. 11, with shares in Hong Kong rising for the fifth session and the Japanese market showing a second day of gains.

  • Reuters provides business, financial, national and international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers.
  • The analysts expect the South Asian country to give “one of the highest returns among key markets throughout the world for the next several years.”
  • On Thursday, there was speculation of a possible tweak to the Bank of Japan’s (BoJ) Yield Curve Control Policy and forward guidance.
  • Stocks in the Asia-Pacific region mostly grew Wednesday, Oct. 11, with shares in Hong Kong rising for the fifth session and the Japanese market showing a second day of gains.
  • But dealers had to pick up 18% of the sales, greater than the typical 11% share, as more buyers balked.

While gains from the US markets will likely provide support, the Chinese markets will reopen after Golden Week. The Hang Seng Index and ASX 200 made further gains, while the Nikkei ended the session in negative territory. Thanks to high mortgage rates, elevated home prices and rent payments, as well as rising insurance costs amid extreme weather events, Americans are facing a historic lack of affordability in the housing market. He also noted that while the recent auctions didn’t go well, bond yields didn’t shoot to new highs.

Yields fall, stocks rise after Fed officials’ comments; oil slips

Monday’s session saw some decent bullish price action, with the price rallying off its lows and finishing well above Friday’s lows. A close below 14,600 would be needed to reverse how to show remote work experience on your resume the first stirrings of a bullish view created by Monday’s price action. Sumitomo Mitsui Financial Group (8316) and Mitsubishi UFJ Financial Group fell by 0.46% and 1.27%.

  • Household spending figures from Japan and sentiment toward Bank of Japan policy goals weighed on the Nikkei.
  • Leading the index’s losses is e-commerce giant JD.com, which slumped as much as 12% to its lowest in a year.
  • Asian stocks experienced another day of buoyant trading amid ongoing hopes of government stimulus in China and as global equities broadly benefited from a retreat in bond yields.
  • It tracks the performance of the largest and most actively traded companies listed on the Tokyo Stock Exchange (TSE).
  • Hong Kong’s Hang Seng Index gained 1.3%, its fifth straight day of gains and the longest winning streak for the index since mid-July.

The composition of the Nikkei 225 and the weighting of the shares included in it are reviewed once annually and adjusted when necessary. This responsibility falls to the Japanese business newspaper, Nihon Keizai Shimbun (Nikkei), which calculates and oversees the index. Household spending surged by 3.9% in August, reversing a 2.7% slide from July.

Hong Kong’s Hang Seng Index fell more than 2%, dragged by the consumer cyclicals sector. In Japan, the Nikkei 225 slipped 0.55% to close at 32,315.99 and South Korea’s Kospi fell 0.95% to end at 2,456.15. A move back above the 100-day SMA would send a more bullish message, and could then open the way to the August and September high around 15,500, and then on towards 15,760. The buyers came riding to the rescue on Monday, causing a bounce from the 200-day simple moving average (SMA).

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It guides the Singapore dollar against an undisclosed basket of currencies of its major trading partners, adjusting the pace of its appreciation or depreciation by tweaking the slope, width and center of the currency band. The Monetary Authority of Singapore does not disclose any detail relating to this band. China’s exports have fallen fxcm broker review on a year-on-year basis every month this year starting in May. The last positive print for imports on a year-on-year basis was in September last year. Tepid prices underscore what China’s top leaders labeled as a “tortuous” economic recovery after the country emerged from its draconian zero Covid curbs toward the end of last year.

Derived Indexes

The main components of the Nikkei also ended the session in negative territory. Household spending figures from Japan and sentiment toward Bank of Japan policy goals weighed on the Nikkei. On Thursday, there was speculation of a possible tweak to the Bank of Japan’s (BoJ) Yield Curve Control Policy and forward guidance. “Socioeconomic effects resulting from affordability challenges are credit negative, because they can hamper state economic and tax revenue growth, while simultaneously ramp up state spending,” the strategists said.

Dow still fighting to hold 200-day moving average

This saw the price rally off its lows and finish the day above Friday’s lows, a small bullish signal after the losses of the past week. Now the buyers would need to generate additional momentum to suggest that a low has been formed. A close back above the August low around 34,040 would be a bullish development, and might then set up a fresh move towards 35,000. The shares included in it are weighted according to price; the index level represents the average of the shares included in it. Dividend payments and stock market turnover are not considered when calculating the index.

We are also frequently conducting custom data collection projects for our clients, ranging from a few hours of work to research projects occupying a full-time team of data scraping specialists. “The question is what’s going to win out this year. This broader concern about the macro backdrop — potential demand softness — or questions about the security of supply,” Croft said. AllianceBernstein revealed some of its favorite stocks in the country, including two new names on its radar. “Our sense is that the FOMC will need to see core inflation break below 4% and believe it will continue to trend downward to pause and remain on hold for a prolonged period,” Senyek wrote to clients.

Supported by world-class markets data from Dow Jones and FactSet, and partnering with Automated Insights, MarketWatch Automation brings you the latest, most pertinent content at record speed and with unparalleled accuracy. Artificial intelligence-related stocks have rallied as the theme gained traction this year, with investors piling into favorites such as Nvidia and Microsoft. The analysts expect the South Asian country to give “one of the highest returns among key markets throughout the world for the next several years.” The reading came in below expectations of a 5.5% increase by economists polled by Reuters, and still remains above central bank’s target of 4%. The Monetary Authority of Singapore is expecting core inflation to “step down further to between 2.5% – 3.0% year-on-year by December,” it said in a statement Friday.

In fact, the 30-year rate still remains below its 5% peak, and the 10-year yield is headed towards a 4.6% level. A string of recent Treasury bond auctions saw a major slump in investor demand, and that could be a harbinger of a trend that sends yields higher, strategists said. Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and bdswiss review international news to professionals via desktop terminals, the world’s media organizations, industry events and directly to consumers. Stronger economic growth, accelerating government spending and a bottoming out of inflation are just some reasons why many analysts are bullish on India — and asset management firm AllianceBernstein is no exception. India’s inflation data rose 5.02% year-on-year for September, easing to a three-month low on the back of lower vegetable prices.

The Singapore central bank manages monetary policy through exchange rate settings, rather than interest rates. Exports fell by 6.2% last month from a year ago, less than Reuters’ forecast of a 7.6% drop. Similarly, imports also fell by 6.2% in U.S.-dollar terms in September compared to a year ago — slightly more than the 6% decline expected by the Reuters poll.

Strategists pointed out that the number of states with a rent-to-income ratio above 20% has increased from five states to nine between 2019 and 2023. “In the near-term, however, worries about a lack of demand for Treasurys could allow rates to re-test recent highs, with 10s potentially making a run at the 5% mark,” they said. TD Securities warned this could put upward pressure on rates, which will weigh on economic growth and eventually lead rates lower by year-end and in 2024. They added that investor conviction is low while the Treasury Department will likely increase the size of its auctions in the coming months, with more long-dated debt coming to market.

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