Markets Worried About Rising Bond Yields

Markets are worried that the increase in bond yields will distort the stock outlook in global indices.

Markets are worried about rising bond yields. The rising bond yields theme, which came to the fore this week, continues to have an impact on Friday's transactions. Wall Street indices ended with a decline on Thursday, fearing that the rise in US bond yields will start to distort stock outlooks. The S&P 500, which completed with a 0.44 percent loss, declined in futures on Friday. Losses of over 1 percent were effective in Asia. On Thursday, the yield on US 10-year bonds dropped 4 basis points to 1.28 percent this morning, after seeing over 1.31 percent. With a significant progress in vaccination against coronavirus in the UK, the pound, which completed yesterday at 1.3975 with 0.85 percent gain against the US dollar, remained stable in the first transactions on Friday. Bitcoin, which broke a record by testing over $ 52,700 on Thursday, dropped to around 51,000.   Employment Alert from Yellen Despite the strong retail sales data announced in the US, weekly unemployment benefits data rose above expectations, in line with the statements of US Treasury Secretary Janet Yellen. With this increase, it pointed to the difficulties in front of the economic recovery. Despite the announcement of strong January retail sales data in the US this week and high levels in stock assessments, Yellen stated that his country continues to need a $ 1.9 trillion support package. Speaking to CNBC, Yellen stated that despite the aforementioned data, the necessity of the incentive package offered by US President Joe Biden continues, she said, “It is very important to have a large package in order to cover the damage. The price of doing less would be greater than doing more.” Noting that 9 million more Americans were unemployed than before the coronavirus epidemic, Yellen stated that 4 million people were out of the workforce.