US Treasury yields are hitting multi-year highs, keeping pressure on US stocks as expectations of another Federal Reserve rate hike grow. In a relief …
1/9US Treasury yields | Treasury yields remained near multi-decade highs on Thursday as investor bets on another Federal Reserve rate hike increased. The 30-year Treasury yield was down less than 1 basis point to 5.399%, after touching around 5.44%, its highest level since 2004. The benchmark 10-year Treasury yield fell more than 1 basis point to 5.10%, after hitting its highest level since July 2007 earlier in the session. The 2-year Treasury yield declined more than 4 basis points to 4.854%, though it remained close to a 2023 high.
2/9US Markets | US stocks fell on Thursday as Treasury yields continued to rise, with traders pricing in the possibility of further Federal Reserve rate hikes. A pullback in Oracle weighed on technology stocks. The Nasdaq Composite fell 0.5%, while the Dow Jones Industrial Average declined 167 points, or 0.3%. The S&P 500 dropped 0.2%.
3/9US Jobless Claims | Applications for US unemployment benefits dropped last week to the lowest since July, suggesting layoffs remain rare across a broadly stable labour market. Initial claims edged down 1,000 to 197,000 in the week ended September 19, according to Labour Department data released Thursday. That’s one of the lowest readings since 1969.
4/9US-Iran war | Iran has warned that the geographical scope of its war could expand if the United States launched another strike. Yahya Rahim Safavi, a senior adviser to Iran’s Supreme Leader, issued the warning, saying the war could reach the Indian Ocean and “perhaps beyond”.
5/9US New-Home Sales | US new-home sales climbed in August at the fastest pace this year, suggesting a mix of price cuts and sales incentives is helping ease affordability constraints. Sales of new single-family homes increased 6.4% in August to an annualised rate of 684,000, according to federal government data released Thursday.
6/9Federal Reserve Bank of Philadelphia | Federal Reserve Bank of Philadelphia President Anna Paulson said additional interest rate increases may be needed to ensure inflation returns to the central bank’s 2% goal. “Looking ahead, if conditions evolve as I expect, some modest further tightening may be warranted,” Paulson said Thursday in remarks prepared for an event in Philadelphia.
7/9SEBI Board Meet | SEBI approved a wide-ranging set of regulatory changes covering portfolio managers, settlement proceedings, foreign portfolio investors (FPIs), research analysts, advertising norms, and ease-of-doing-business measures for real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). One of the key decisions was an overhaul of the portfolio managers’ framework, including the introduction of a new route called the Portfolio Managers Route for Investment in Mutual Fund Units (PRIM).
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8/9Crude oil | Oil surged as Iran threatened to expand the war in the Middle East, worsening the outlook for a deal to reopen the vital Strait of Hormuz. Brent futures jumped more than 3% to trade above $106 a barrel, after a top Iranian military official said Tehran may broaden the war to the Indian Ocean if attacked again by the US or Israel. Saudi Arabia, meanwhile, came under attack from the Houthis again.
9/9Tata Sons | Tata Sons rejected founding-family patriarch Noel Tata’s objections to Natarajan Chandrasekaran’s reappointment as chairman, according to people familiar with the development, signalling that the boardroom battle at one of India’s largest conglomerates could be headed to court, Bloomberg reported. The decision was valid, based on legal advice regarding the interpretation of the company’s Articles of Association, Suprakash Mukhopadhyay, company secretary at Tata Sons, wrote in a response to Noel Tata, the people said, asking not to be identified as the information is private. The head of Tata Trusts, which owns 66% of the group’s holding company, had sought a clarification from the company secretary about the decision.