Fears about falling bond prices that took over the market eased on Monday as European equities and US futures rose as bond yields fell.
Rising bond yields crashed into equity markets last week, with the Nasdaq Composite COMP
losing about 5%. The increase in returns makes the relative valuation of stocks look worse. Yields move in the opposite direction to prices.
US 10-year Treasury yield TMUBMUSD10Y,
it was 1.43%, up from 1.55% last week.
The Reserve Bank of Australia doubled its daily bond purchases to A $ 4 billion, generating returns on the Australian TMBMKAU-10Y in 10 years,
strongly lower. Comments from Federal Reserve officials last week did not suggest any appetite to intensify U.S. government bond purchases.
“I have little doubt in my mind that central banks will end up leaning heavily against a sustained rise in yields. You just can’t afford to see it happen with such a high debt, ”said Jim Reid, strategist at Deutsche Bank. “So far, Fed officials have been largely relaxed in recent moves, suggesting it reflects more positive economic growth. But as it happened so fast last week, they will have had a chance to regroup and align your message for this week “.
Relief on the tax front gave a boost to stocks, with the Stoxx Europe 600 SXXP,
gaining 1.6% after a rebound in Asian shares of NIK,
during the night.
Dow Jones YM00 Industrial Average Futures
increased by more than 300 points.
UK homebuyers jumped on report, government reports will subsidize mortgages with 5% down payment, a measure aimed at boosting property in a country with an average house price of £ 251,500 and £ 496,066 in London. Khaki PSN,
increased 6% and Taylor Wimpey TW,
added 5%.
UK Chancellor Rishi Sunak hands over the budget on Wednesday.