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Why Stock Investors Are Starting to Really Worry About Rising Bond Yields

Fear of inflation is causing investors to speculate the Federal Reserve may have to shift policy sooner than expected, by either reducing bond purchases or even raising rates at some point. That would be a negative for stocks. The Dow was down 559 points on Thursday. Peter Tchir from Academy Securities says the recent rise in 10-year bond yields represents a perception about inflation, but not necessarily the reality:  The rise in 10-year bond yields does not reflect an actual rise in inflation, it reflects that investors anticipate there will be a rise in inflation, he told me. Tchir notes that Federal Reserve Chairman Jerome Powell has been pushing back against the idea that over-the-top inflation is coming, noting in his testimony that broad signs of inflation have not been present in the real world, and that if they do occur any such rises would be transitory.

U S Stocks Fluctuate While Bond Yields Climb: Markets Wrap

Tech shares led a rout in U.S. stocks while the selloff in global bonds deepened, with the benchmark Treasury yield spiking to a one-year high and debt from the U.K. to Australia coming under pressure.

South Africa s rand edges higher, holds on to post-Budget gains

By Reuters Staff 2 Min Read A South African Rand is seen in this illustration picture taken October 30, 2020. REUTERS/Mike Hutchings/Illustration JOHANNESBURG (Reuters) - South Africa’s rand was slightly firmer early on Thursday, holding on to gains it made in the previous session after Finance Minister Tito Mboweni’s budget speech assured some investors that the country could avoid a full fiscal crisis. At 0630 GMT, the rand was 0.19% firmer at 14.4725 per dollar, a touch off its 13-month high of 14.3950 it hit on Wednesday. Mboweni announced up to 19.3 billion rand ($1.33 billion) of spending on coronavirus vaccines and forecast a deficit of 14% of gross domestic product this fiscal year, while repeating promises to cut down on expenditure.

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