Mid-June economic review moneyweb.co.za - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneyweb.co.za Daily Mail and Mail on Sunday newspapers.
(Bloomberg) A rapid souring in financial markets on Monday highlights how even the most positive news for the world economy is no fillip to risk assets weighed down by the anchor of the global bond market.Such is their sensitivity to rising Treasury yields, that the weekend approval of a $1.9 trillion U.S. stimulus package and a surge in China’s exports sent U.S. equity futures and other risk-sensitive assets lower. The Turkish lira and South African bonds tumbled while stocks sold off across much of Asia as the 10-year Treasury yield briefly pushed beyond 1.60%.“Profit taking is not over yet, given that the yield continues rising and investors have become cautious,” said Jackson Wong, Hong Kong-based asset management director at Amber Hill Capital Ltd. “The 10-year bond yield at around 1.6% is not good for asset valuations and there is no prospect that the yield increase will stop in the near-term.”Improving data and the imminent passing of the sec