Us Yields News Today

Spot gold closed $2 down at $2301 in a highly volatile market Friday. US nonfarm payroll and ISM services data fell short of forecast; however, inflationary pressure continues to build up.

The ten-year US yields at 4.67% were around 1% lower Friday; however, yields were up nearly 1% to finish the week higher, whereas the 2-year US yields at 4.99% were up nearly one bps on the week, but down nearly one bps Friday.

The benchmark 10-year Indian yield was at 7.2203% as of 10:00 a.m. IST, following its previous close at 7.2061%.

Fridays gains in gold were driven mainly by a dip in the US yields, especially long-term yields, which in turn were driven by month-end rebalancing of treasuries as investors focused on next weeks supply and demand dynamics.

HDFC Bank, with a 52% FPI holding, and IndusInd Bank, with 42%, dropped 15% each since last Wednesday. Zee Entertainment, with a 28% FPI holding, tumbled 36% during this period. Jindal Stainless and Indiabulls Housing, both with a 23% FPI stake each, dropped 13% each.

​US Treasury yields climbed on Wednesday after an unexpected rise in UK inflation last month and stronger-than-expected U.S. December retail sales data strengthened the case that interest rate cuts will not be as imminent as the market expects.

The three major US stock market indexes were lower after paring initial losses, while the greenback strength against a basket of world currencies waned a bit after the first hour of trading.

MSCIs broadest index of Asia-Pacific shares outside Japan rose 0.7% to the highest since early September and was up 2.5% for the week. Japans Nikkei jumped 1.2%, also heading for a weekly gain of 2.5%.

RBI’s MPC is expected to maintain status quo on key rates with fifth consecutive pause when it shares the outcome of the MPC meeting on December 8. The RBI may continue to defend the wicket given softening crude prices, weakening Indian rupee and easing long term US yields.

The optimism can be seen in the relentless asset growth of the iShares MSCI Emerging Markets ex-China ETF, known by its ticker EMXC, which gives investors exposure to emerging market equities, excluding Chinese stocks