Bonds slip back amid rising rate cuts doubts
Stocks and bonds retreated as traders pause after November’s blockbluster rally and debate the case for interest rate cuts. Bitcoin surged past $41,000, while gold briefly touched an all time high.
The 10-year Treasury yield added four basis points to 4.24%, while European stocks and U.S. futures posted modest losses. Gold surpassed $2,130 an ounce before giving up gains for the day.
A slew of economic reports this week are expected to shed light on the state of the U.S. labor market and whether markets are prematurely excited that softer economic conditions can open the door to Federal Reserve rate cuts.
“Rates seem to price more the positive news than not,” Mauro Valle, head of fixed income at Generali Investments Partners, wrote in a note. “It’s unlikely to see another movement for lower yields in the final weeks of the year.”
The latest reading on US job openings for October is due to be published Tuesday, followed by ADP’s National Employment Report on Wednesday and non-farm payrolls on Friday.
Gold slid from its intraday high, trading around $2,063 an ounce. Bitcoin climbed past the $41,000 level to the highest since April 2022.
“As long as those rate conditions stay where they are, gold will remain supported over the next three to four weeks,” Eric Robertsen, global head of research and chief strategist at Standard Chartered Bank, said on Bloomberg Television.
Indian equities were headed for a fresh record after Prime Minister Narendra Modi’s victories in three key state elections boosted expectations of policy continuity.
Shares of distressed developer China Evergrande Group surged as much as 22% after a Hong Kong court again postponed a decision on whether the world’s most-indebted property developer should be
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