Yields on the U.S. 20-year and 30-year bonds briefly inverted on Thursday, with traders attributing the move to technical factors amid the overall backdrop of yield curve flattening across the board in anticipation of Federal Reserve rate hikes next year. At one point, U.S. 20-year yield was above that of the 30-year.
The yield on the U.S. 20-year bond on Thursday rose slightly above the 30-year bond yield for the first time, according to traders, a move that garners attention because of investor sensitivity to inverted yield curves that can be a harbinger of recession. At 1052 EDT the 20S/30S spread was -0.27 basis point, having ended Wednesday at 1.24 bp.
Italian bond yields were set for their biggest daily rise in over a year on Thursday after ECB President Christine Lagarde disappointed investors' hopes she would calm their concerns over surging inflation and rate hikes.
U.S. Treasury yields rose on
Thursday, tracking European bonds, as investors shrugged off
weaker-than-expected U.S. economic growth data and focused
instead on the inflation components of the report, ...
The Canadian dollar edged higher
against its U.S. counterpart on Thursday and Canadian bond
yields rose, adding to moves from the previous day when the Bank
of Canada signaled an earlier start to ...
Southern European bonds were set for their biggest sell-off in over a year as ECB President Christine Lagarde spoke at the bank's policy meeting. Euro zone bond yields were already up sharply ahead of the meeting as money markets moved to price in a full probability of a 20 basis point ECB rate hike by December 2022.
* Focus also on Q3 U.S. GDP. By Arundhati Sarkar. Gold prices rose on Thursday, drawing support from softer U.S. bond yields and the European Central Bank's decision to keep policy unchanged as expected, which allayed investor fears of an imminent interest rate hike. Spot gold was up 0.3% to $1,802.60 per ounce at 1238 GMT.
Advance Estimate GDP for 3 Q; U.S. Weekly Jobless Claims; Merck& Co. Inc. 3 Q results; Caterpillar Inc. 3 Q results; Mastercard Inc. 3 Q results; Comcast Corp. 3 Q results; Apple Inc. 4 Q results; Amazon.com Inc. 3 Q results; Starbucks Corp. 4 Q results. Stocks headed for muted opening gains as investors awaited data on U.S. economic growth and earnings from Apple and Amazon.com, among other major companies.
Short-dated euro zone bond yields jumped and long-term inflation expectations hit a new seven-year high on Thursday, putting pressure on European Central Bank officials to address rising inflation when they talk to the press later in the day.
* ECB decision at 1130 GMT, news conference to follow. * Focus also on Q3 U.S. GDP. * WGC expects physical demand in India to strengthen in Q4. By Arundhati Sarkar. Gold rose on Thursday, hovering above the $1,800 mark as softer U.S. Treasury yields lifted its appeal, while investors await the European Central Bank's remarks on inflation and policy outlook when it meets later in the day.
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