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Short-End Treasuries Fall, Asia Stocks Trade Flat: Markets Wrap
Photographer: Tomohiro Ohsumi/Bloomberg
February 21st, 2018 | 09:35 AM | 1366 views
ASIA
Asian stocks traded mixed following a decline in their American counterparts while shorter-dated U.S. Treasuries extended losses amid a massive debt issuance. The dollar steadied after Tuesday’s gains.
Japanese and Australian shares recouped early losses to trade little changed, while futures signaled gains when Hong Kong trading begins. The S&P 500 Index closed below its average price for the past 50 days after Walmart plunged the most since 1988. Yields on two-year Treasuries built on earlier gains, when the U.S. Treasury sold $179 billion of securities. The yen continued its retreat from recent highs.
The Treasury’s $258 billion of auctions slated for this week comes amid surging rates that gave impetus to one of the steepest equity selloffs in years two weeks ago. While investors seem to have adjusted to 10-year rates at a four-year high for now, the deluge of supply could push yields higher, weakening the case for owning stocks at elevated valuations.
Investors will also get to parse minutes this week from the most recent meetings of both the Federal Reserve and the European Central Bank.
Elsewhere, oil in New York steadied and Bitcoin declined back under $11,000.
Terminal users can read more in our markets blog.
Here are some key events scheduled for this week:
The Federal Reserve will release minutes on Wednesday of its Jan. 30-31 meeting, Janet Yellen’s last as chair, where officials kept the rate unchanged.
Fed policy makers speaking this week include New York Fed President William Dudley and Atlanta Fed President Raphael Bostic. Cleveland Fed President Loretta Mester is among speakers at the U.S. Monetary Policy Forum in New York City.
Companies announcing earnings this week include Glencore, Woolworths, Barclays and Royal Bank of Scotland.
Chinese markets reopen on Thursday after holidays.
These are the main moves in markets:
Stocks
Japan’s Topix index was flat as of 9:18 a.m. in Tokyo.
Australia’s S&P/200 Index dropped less than 0.1 percent.
Futures on the S&P 500 rose 0.2 percent. The underlying measure fell 0.6 percent.
The MSCI Emerging Market Index declined 0.5 percent, the biggest drop in more than a week.
Currencies
The Bloomberg Dollar Spot Index was little changed after increasing 0.6 percent to the highest in a week.
The yen slid 0.1 percent to 107.39 per dollar. It has weakened from a high of 105.55 on Feb. 16, the lowest level since November 2016.
The euro was trading at $1.2338.
Bonds
The yield on 10-year Treasuries was steady at 2.89 percent.
The 2-year yield rose four basis points to 2.26 percent, the highest since 2008.
Australia’s 10-year yield was steady at 2.90 percent.
Commodities
West Texas Intermediate crude fell 0.2 percent to $61.65 a barrel.
Gold rose 0.1 percent to $1,330.47 an ounce after dropping 1.3 percent.
Source:
courtesy of BLOOMBERG
by Andreea Papuc
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