Schneider Electric Expands Youth Partnership with Enactus to Drive Inclusive Energy Transition in Egypt    China's Jiangsu Zhengyong to build $85m factory in Egypt's Ain Sokhna: SCZONE    Egyptian pound ticks up vs. US dollar at Thursday's close    Egypt condemns Israeli plan to build 3,400 settler homes in West Bank    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Egypt, Namibia explore closer pharmaceutical cooperation    Egypt, China ink $1bn agreement for Sailun tire plant in SCZONE    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egypt's Electricity Minister discusses progress on Greece power link    Egypt's FM discusses Gaza, bilateral ties in calls with Saudi, South African counterparts    Egypt prepares to tackle seasonal air pollution in Nile Delta    27 Western countries issue joint call for unimpeded aid access to Gaza    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Colombia discuss medical support for Palestinians injured in Gaza    Australia to recognise Palestinian state in September, New Zealand to decide    Egypt, Huawei explore healthcare digital transformation cooperation    Global matcha market to surpass $7bn by 2030: Nutrition expert    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt, Uganda strengthen water cooperation, address Nile governance    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Korean Cultural Centre in Cairo launches folk painting workshop    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



US yields slip as selloff pauses, dollar down
Published in The Egyptian Gazette on 09 - 12 - 2010

HONG KONG - US Treasury prices edged up on Thursday as bargain hunters entered the fray after a violent two-day surge in yields, pulling the dollar lower, while Asian stocks rose on hopes added fiscal stimulus will help the US economy in the near term.
In stark contrast to the jobless US recovery that the White House is trying to shore up with tax cuts, Australia's jobs growth in November was the biggest since January, blowing past forecasts and lifting the Australian dollar and domestic shares.
The financial world is becoming split between investors who are deeply concerned a proposal from US President Barack Obama to extend tax cuts will worsen a budget shortfall, and investors who are relieved US authorities are trying to use fiscal and monetary medicine for the economy.
Both higher US yields and higher growth are being seen as supportive for the dollar, for now.
"The stimulus measures agreed by the US administration will likely lead to many analysts penciling in higher growth forecasts over 2011 whilst reducing the prospects of QE3 from taking place, all of which is dollar positive," Mitul Kotecha, global head of foreign exchange strategy with Credit Agricole CIB in Hong Kong, said in a note.
The lead 10-year US Treasury future was up around 9/32 in early Asian trade, after hitting the lowest since June 25 overnight. Even after the Federal Reserve's highly anticipated plan to buy more bonds to push down interest rates was hatched in early November, the bond market has relentlessly sold mid to longer-maturity bonds.
Since November, the difference between 10-year yields and 2-year yields has widened by nearly 40 basis points.
In the cash market, the benchmark 10-year yield was at 3.22 per cent after climbing to 3.33 per cent on Wednesday, the highest since June.
The poor performance of sovereign bond markets in the fourth quarter made much worse this week has become a question of allocation for many investors. Bob Doll, chief investment strategist at BlackRock, told the Reuters 2011 Investment Outlook Summit the deal in Washington to extend tax cuts will probably accelerate the move of cash into equities and out of fixed income.
The US dollar has benefited from the rapid pace of rising Treasury yields relative to other sovereign bonds. The move lower in US yields on Thursday pushed down the dollar index, a gauge of performance against six other major currencies, 0.33 percent.
The Australian dollar rose 0.7 per cent to $0.9863 after employment increased by a net 54,600 jobs last month, surpassing expectations of a 19,000 gain.
Interbank rate futures tumbled while Australian government bond futures fell, unlike other sovereigns on the day.
In stock markets, Japan's Nikkei share average hit a seven-month high though short-term measures showed the market was due for a pause, having risen 12 percent since November compared with the 6 per cent advance in the MSCI all-country world index (.MIWD00000PUS).
"Thanks to both the yen's weakness and Nikkei futures ending higher in Chicago, the Nikkei may see more buying, but the market has been overbought," said Yumi Nishimura, a senior market analyst at Daiwa Securities Capital Markets.
Foreign investors gobbled up Japanese stocks last week, with net buying reaching the highest since early April, Finance Ministry data showed. Foreigners have been net buyers for 5 straight weeks, bringing the total net buying to 730.6 billion yen over the period. Out of the last 10 weeks foreigners were net buyers in nine weeks.
The MSCI index of Asia Pacific stocks outside Japan rose 1.1 per cent (.MIAPJ0000PUS), with gains spread evenly across all sectors.


Clic here to read the story from its source.