The yield on the benchmark 10-year US Treasury notes soared to 1.776%
US stocks finished marginally lower overnight, as investor sentiment was affected by the resurgent bond yields and the persisting concerns over rising coronavirus cases in several countries. The yield on the benchmark 10-year US Treasury notes soared to 1.776% at one point before retreating to 1.717%. As a result, S&P 500 slid 0.32%, the Dow Jones Industrial Average dropped 0.31%, and the Nasdaq Composite fell 0.1%.
Today in Asia, equities were broadly lower despite solid economic data out of China. The country’s manufacturing PMI came in at 51.9 in March, up from 50.6 in February, expanding to the highest level this year. Still, the Shanghai Composite shed 0.43% while Japan’s Nikkei 225 dipped 0.86%, and South Korea’s Kospi lost 0.28%. In Australia, the S&P/ASX 200 bucked the trend, adding 0.78% after the data showed that house building approvals hit a record high in February.
European markets opened slightly lower on Wednesday, as investors kept an eye on rising bond yields. The Stoxx Europe 600 index was flat in early trading following three straight days of gains. As for the data, Germany’s jobless claims fell by 8,000 after rising by 9,000 in February versus forecasts for a fall of 5,000.
Meanwhile, rising Treasury yields pushed the safe-haven dollar to fresh highs. The buying pressure has eased somehow in recent trading, sending EURUSD into positive territory after a brief plunge to the 1.1700 figure earlier in the day. Despite the bounce, the common currency remains on the defensive and could challenge the mentioned support in the short term if the risk-off tone intensifies again.