(Bloomberg) – Bond sales continued on Monday, with Treasury yields rising and sovereign debt falling in Australia and New Zealand. Most Asian stocks moved forward as investors comforted themselves with positive news about the vaccine’s effectiveness.
The 10-year reference Treasury yields rose to the highest in about a year. The Asian stock indicator rose with the performance of Japanese stocks. S&P 500 contracts fluctuated after the index fell on Friday. The dollar fell.
Crude oil rose to $ 60 a barrel, while wells were restarted slowly in Texas after being hit by a major freeze. Bitcoin reached another record over the weekend. Copper hit its nine-year high in a sign of optimism about the global recovery.
Sovereign bonds fell due to expectations that vaccines and more fiscal stimulus will spur global recovery and inflation. In Israel, the vaccine Pfizer Inc. and BioNTech SE Covid-19 appeared to prevent the infection of the vast majority of recipients. Progress against the disease has helped sentiment in the stock and commodity markets, but investors are also asking whether the reflective trade will increase yields to a point that will eventually harm risk appetite.
Stocks are rising with the prospect of more pandemic relief spending, as well as “continued dovish rhetoric and more acceptance of the Fed’s early stages of inflation before even thinking about moving into a tightening bias,” said Simon Ballard, chief economist at First Abu Dhabi Bank.
Read: Inflationary anxiety is about to rewrite the stock market manual
Investors will be monitoring this week’s testimony from Federal Reserve Chairman Jerome Powell for any signs that he is concerned about higher long-term borrowing costs. In Australia, the central bank resumed buying three-year bonds to defend its yield target.
Reference titles also fell in New Zealand. The country’s sovereign credit rating was raised by Standard & Poor’s Global Ratings, boosting the New Zealand dollar.
Some important events to watch this week:
Fed Chairman Jerome Powell delivers the central bank’s semi-annual monetary policy report to the Senate Banking Committee on Tuesday. The EIA’s crude oil inventory report is released on Wednesday. The Bank of Korea’s monetary policy decision is released on Thursday. 20 will meet virtually on Friday. US Treasury Secretary Janet Yellen will be among those present.
These are some of the main movements in the markets:
Stocks
S&P 500 futures were up 0.1% from 10:51 am in Tokyo. The S&P 500 fell 0.2% on Friday. Japan’s Topix index rose 1%. Australia’s S & P / ASX 200 index was stable. South Korea’s Kospi index increased 0.4%. Hong Kong’s Hang Seng index rose 0.5%. Euro Stoxx 50 futures have changed little.
Coins
The yen was at 105.55 per dollar. The offshore yuan was at 6.4554 per dollar. The euro was at $ 1.2133, up 0.1%. The pound traded at $ 1.4039, up 0.2%. The Australian was at 78.97 cents, up 0.4%. The Bloomberg Dollar Spot Index fell 0.1%.
Titles
Yield on 10-year Treasury bonds increased by about four basis points, to 1.38%. Yield on Australia’s 10-year bonds rose 13 basis points to 1.56%.
Commodities
West Texas Intermediate crude oil increased 0.8% to $ 59.69 a barrel. Gold rose 0.2% to $ 1,786 an ounce.
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