Misleading the investigation. Were live in washington. Yvonne, good morning and good morning to all our viewers across asia pacific. Markets. Ng a look at last night, i was writing to myself, we made 66 in terms of u. S. Markets. To it seven . Hop on the board because we didnt. S p down sixths of one percent. That w down 1 , we saw huge u. S. Treasury yield, a lot of folks going into that. Billion there. Hop into the bloomberg terminal. Want to show you whats happening in terms of yields. We can see that these lines twoyear te for the treasury yield, blue, fiveyear treasury yield and yellow for sevenyear treasury yield all hitting highs not seen since five and 011 for the seven and not since 2008, as i said in the intro, in terms of yield. Year so were seeing some decent demand as weve been reporting t, but, you know with these rising yields people are higher can wemuch go. We get used to these kinds of things. Off 258 billion worth of those government bonds of days or couple certainly
Also announcing a Share Buyback worth 300 million. Always lots of airlines pu ns. , in theof up and down bond market, this chart 6473, a constant worry for Market Participants when they look at the highyield corporate debt markets represented by the white line. We have seen a declined in the highyield Corporate Bond etfs. That has some worried whether this decline will spillover into equity markets. That does not seem to be the case when you look at the gap between highyield debt and 10 year treasuries. Range, has stayed within represented by the blue line, and that is reassurance or market watchers, seeing the highyield behaving like what we are seeing in treasuries, so not likely to be a catalyst if there was more market turmoil. We dont see contagion when it comes to the credit space. The price action after the fed minutes, we got more clarity, but towards the late part of the session, yields picking up on the 10 year, stocks tumbled, the dollar reversing come so it seems like there
Rishaad looking at the state of the markets, in flux in this part of the world. On wall street, equities ending a winning streak, and this time we cant point the finger at the bond market. Earnings are the primary culprit this time around. A major blow as it has really had some missteps taking on amazon. Haidi a pretty mixed picture going into the proper asian trading session that is underway. We are still watching the bond market. A huge week as u. S. Markets came back from president s day. We had a round of treasury auctions. Take a look at this chart. Pretty staidlly a session. 2. 9 ,year hitting about inching closer to 3 . Twoyear, twomonth and threemonth, they went up to rates we havent seen since 2008. Something of a litmus test in terms of how quickly and how disruptively these yields could rise. It is not how high the yields will go, but how quickly the bond markets will selloff, that will have implications. We will have that 30 minutes away from the open in hong kong. Singapor
We take a look at their global ambition. This is Bloomberg Markets asia. Rishaad looking positive out there, just seeing whats going on. It does seem as though chinese equity markets could be in for a positive year. The first trading date for the chinese new year, its positive. It leads to a positive year to follow. Look out for that one. Haidi astrology might be as good as any other indicator, technical or otherwise, to engage sentiment. The dollar off to a good start. We are 30 minutes out from the market start. Not much of a lead from wall street, just finishing in positive territory for the benchmark there. But the selloff suggesting we are when it comes to sentiment on higher inflation. Singapore, taiwan, and malaysia just coming online. Asian stocks set to end the week on a positive note as investors debate the impact of rising bond yields and direction of inflation. Stephen mnuchin offering more comments. Did a highlight this morning was japans latest inflation reads. It posted
And facebook, and china h and a on a looming cash crunch. The level of debt in china. Yvonne some breaking news right now, south korea inflation in january looking soft, we see a 1 year on year estimate monthtomonth numbers edging lower at 4 10 of 1 , it seems the inflation looking to be getting more soft. Inething we do get to see the Fourth Quarter because we start to see the base effect starting to unwind and the stock currency weakness it is certainly playing into that inflation picture and it is essentially confirms the analysis that that be ok should bok. On hold in the meantime, inflation here looks like it may be picking up pace. That that statement mentioned Economic Growth and Economic Conditions might mean further gradual rate increases and too many that meant Interest Rate hikes coming faster than expected. I want to pull up one of our favorite charts it is wirp, and it shows Interest Rate hikes near almost 100 . Rate hike iner march, and certainly there is a sense where we