Bond yields jump and stocks wilt as rate cut doubts resurface

London, May 29 (BNA): U.S. government bond yields pushed to a near four-week peak on Wednesday, lifting their global counterparts and pressuring stocks, as data sowed new doubts about the timing and extent of Federal Reserve rate cuts.

 

The benchmark 10-year U.S. Treasury yield rose as high as 4.576%, a level not seen since May 3, and was last up 2 basis points at 4.566%. Yields move inversely to prices, Reuters reported.

 

Germany’s 10-year bond yield rose to 2.637%, the highest in a month, and was last at 2.609%. Meanwhile, equivalent Japanese yields hit the highest since December 2011 at 1.081% on expectations that the Bank of Japan could soon raise interest rates again.

 

The dollar rose to a four-week peak of 157.4 yen on Wednesday, boosted by higher U.S. bond yields. It was last up about 0.2% against the euro at $1.0839.

 

 

Mainland Chinese blue chip stocks edged 0.12% higher after the IMF upgraded its economic growth forecasts for the country.

 

 

 

ZH