(Bloomberg) — U.S. Treasuries fell deeper on Friday after Federal Reserve Chairman Jerome Powell said policymakers would likely wait beyond March to cut interest rates. did. Chinese stocks fell as markets continued to tremble despite signs of official support.
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The yield on the U.S. 10-year Treasury rose about 5 basis points on Friday after the better-than-expected jobs report, and rose another 14 basis points. “The danger of acting too soon is that the job is not yet done,” Powell said in an interview on CBS' 60 Minutes.
The decline in U.S. Treasuries spread across bond markets in Asia and weighed on Australian and New Zealand government debt, pushing yields up about 10 basis points. Chinese government bonds were an outlier, with 10-year bond yields falling by about 2 basis points.
China's benchmark CSI 300 stock index fell more than 1%, and the small-cap index CSI 1000 index fell almost 7%. The decline came despite a statement from the China Securities Regulatory Commission on Sunday saying it would try to prevent abnormal fluctuations and guide more medium- and long-term funds into the market.
Standards in Australia and South Korea have also declined. U.S. stock futures fell after the S&P 500 rose 1.1% to a new record on Friday. The strong performance of U.S. benchmarks continues as February, historically one of the most eventful months of the year for U.S. stocks, begins.
Japanese stocks bucked this trend and rose. Mitsui Fudosan shares soared after the Financial Times reported that Elliott Management had acquired a 2.5% stake in the business and was calling for a share buyback.
The dollar rose against major peers. The yen weakened and was trading around 148 yen to the dollar.
Investor bets on the Fed cutting interest rates in March fell from nearly 40% on Thursday to around 20% on Friday, as the economy's resilience reduces the likelihood of imminent policy easing.
five cuts
Ed Yardeni, president of Yardeni Research, said in a note that even though the outlook for a March rate cut has weakened, “the market still expects five rate cuts this year.” “Fed officials will continue to push back against the idea of significantly lower interest rates.”
Oil prices were little changed as traders assessed the impact of the US and UK attacks on Houthi targets over the weekend. The Iranian-backed Houthis have vowed to comply. West Texas Intermediate was little changed after falling 7.4% last week, its biggest one-week decline since October. Gold fell slightly, trading around $2,037 per ounce.
Former US President Donald Trump also signaled he could impose tariffs of more than 60% on Chinese goods if elected, in another hawkish statement aimed at the US's largest supplier of goods.
This week's main events:
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Eurozone S&P Global Services PMI, PPI, Monday
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Australian interest rate decision Tuesday
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Eurozone retail sales Tuesday
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Order from German factory, Tuesday
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Cleveland Fed President Loretta Mester and Philadelphia Fed President Patrick Harker speak on Tuesday
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Fed President Adriana Kugler and Richmond Fed President Tom Barkin speak on Wednesday
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Bank of England Deputy Governor Sarah Breeden speaks on Wednesday
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Thursday's CPI data for Brazil, China and Russia
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U.S. new unemployment claims, Thursday
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U.S. Treasury Secretary Janet Yellen speaks at a Senate Banking Committee hearing Thursday
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pakistan general election thursday
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ECB Chief Economist Philippe Lane and ECB Governing Council Member Pierre Wunche speak on Thursday
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European Central Bank releases economic update on Thursday
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Canadian unemployment rate Friday
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China's comprehensive lending, money supply, new yuan lending, Friday
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German Consumer Price Index, Friday
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Reserve Bank of Australia Governor Michelle Bullock will testify to Parliament on Friday.
The main movements in the market are:
stock
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S&P 500 futures were down 0.3% as of 11:41 a.m. Tokyo time.
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Nasdaq 100 futures fell 0.3%
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Japan's TOPIX rose 0.8%
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Australia's S&P/ASX 200 falls 0.9%
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Hong Kong's Hang Seng fell 0.7%.
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The Shanghai Composite fell 2.6%.
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Euro Stoxx50 futures little changed
currency
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Bloomberg Dollar Spot Index rose 0.2%
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The euro was almost unchanged at $1.0778.
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The Japanese yen remained almost unchanged at 148.45 yen to the dollar.
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The offshore yuan was almost unchanged at 7.2118 yuan to the dollar.
cryptocurrency
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Bitcoin fell 0.9% to $42,384.43.
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Ether fell 0.9% to $2,278.36.
bond
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The 10-year Treasury yield rose 5 basis points to 4.07%.
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Japan's 10-year bond yield rose 5.5 basis points to 0.715%.
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The Australian 10-year bond yield rose 11 basis points to 4.09%.
merchandise
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West Texas Intermediate crude oil is little changed.
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Spot gold fell 0.2% to $2,035.67 an ounce.
This article was produced in partnership with Bloomberg Automation.
–With assistance from Garfield Reynolds.
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