Bond Yields Are on the Agenda of Global Markets

Risk appetite in global markets was negatively affected by the increase in bond yields.

Bond yields are on the agenda of global markets. Risk appetite in the markets was negatively affected by the increase in bond yields. Having seen the 1.48 percent level, the US 10-year bond yield stabilized at 1.47 percent. With the increase in bond yields, large-scale sales to stock markets were observed. It started with large-scale sales of stocks from Asia to American futures on Thursday, with bond yields increasing at night. Hong Kong Hang Seng index loses more than 2%, leading to declines, while Shanghai Compound is losing more than 1% in Kospi and Topix. Completing Wednesday at 1.48 percent with a 9 basis point gain, the US 10-year bond yield stabilizes at 1.47 percent. The rise in yields also affected Asia Pacific. Australia's 10-year leaps increased by 11 basis points and pushed the ladder to 1.80 percent. The Bloomberg Dollar Index is also gaining in value with bond yields. The index has a 0.1 percent plus. Shana Sissel, CIO of Spotlight Asset Group, stated that inflation has become a concern for investors and said, "There is an excessive amount of money in the system and it makes sense to have some kind of correction".   Focus Is On The Chairman Of The FED Fed Chairman Jerome Powell will make statements today at the Wall Street Journal Employment Summit in the rapidly rising US bond yields region. Powell pointed out in his evaluations to date that the increased returns indicate a healthy recovery. Lael Brainard was the only member to raise concerns on the Fed's side. However, Powell will again deliver his speech in the shadow of rising inflation expectations. The five-year breakeven inflation rate is 2.5 percent, the highest since July 2008. Fed Chairman Jerome Powell will signal in his speech that the Fed will give a policy response if rising yields threaten the economic meeting, according to Standard Chartered strategists John Davies and Steve Englander. Strategists predict Powell will not touch upon which policy options to use.