(Bloomberg) — A selloff in Treasuries reverberated across the globe, with hawkish Federal Reserve wagers driving benchmark yields to the highest since 2007 and rattling stocks once again.
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The S&P 500 came down for a third session. Ten-year US bonds headed toward a 12th straight week of losses, the longest streak since 1984, when then-Fed Chairman Paul Volcker was carrying out a series of rapid rate hikes.
“The continued rise in interest rates also means that valuations, despite falling in absolute terms, do not yet fully discount a bear case, especially in the US,” said Mark Haefele, Chief Investment Officer at UBS Global Wealth Management. “The selloff in equities can be almost entirely explained by higher interest rates, while lower growth expectations are not yet priced into stocks, in our view.”
Volatility is showing no signs of abating with Friday’s $2 trillion options expiration and another raft of corporate earnings.
The Japanese yen extended its slide against the US dollar, despite repeated warnings from authorities that they will intervene to halt the currency’s decline.
Some of the main moves in markets:
The S&P 500 fell 0.3% as of 9:30 a.m. New York time
The Nasdaq 100 fell 0.5%
The Dow Jones Industrial Average fell 0.2%
The Stoxx Europe 600 fell 1.4%
The MSCI World index fell 0.7%
The Bloomberg Dollar Spot Index rose 0.3%
The euro fell 0.2% to $0.9768
The British pound fell 0.8% to $1.1140
The Japanese yen fell 1% to 151.58 per dollar
Bitcoin fell 0.5% to $18,933.81
Ether fell 0.5% to $1,275.37
The yield on 10-year Treasuries advanced six basis points to 4.29%
Germany’s 10-year yield advanced seven basis points to 2.47%
Britain’s 10-year yield advanced 15 basis points to 4.06%
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