Tag: bond yields

  • FTSE 100 Opens Higher at 10,717.59 Despite Global Bond Sell-Off; Brent Crude Holds Above $106

    FTSE 100 Opens Higher at 10,717.59 Despite Global Bond Sell-Off; Brent Crude Holds Above $106

    The FTSE 100 opened Friday’s session 37.60 points higher at 10,717.59, shrugging off continued pressure from a global bond sell-off that pushed the 10-year gilt yield to its highest level in more than a week. Investor attention remains fixed on escalating tensions in the Middle East following fresh Houthi missile attacks on Saudi Arabia, while oil prices hovered near recent levels.

    Oil and currency movements

    Brent crude futures edged down 0.29% to USD 106.3 per barrel, while US West Texas Intermediate dropped 1.11% to USD 93.56. In currency markets, sterling was quoted at USD 1.3219 early Friday, up slightly from USD 1.3214 at the London equities close on Thursday. Against the euro, the pound eased to EUR 1.1620 from EUR 1.1628.

    Leading gainers and losers

    Computacenter led the FTSE 100 risers, climbing 3.15% to 5,405p. Smiths Group advanced 2.25% to 2,819p, while Standard Chartered gained 1.86% to 2,299p. Aberdeen Group rose 1.83% to 245.40p, followed by Endeavour Mining and Glencore, which each added 1.57%.

    On the downside, BP slipped 2.47% to 557.70p, British American Tobacco dropped 1.11% to 4,196p, and Unilever declined 1.00% to 4,661.50p. Reckitt Benckiser and Shell each fell 0.41%, while Admiral Group retreated 0.39%.

    Gilt yields hit multi-day high

    The 10-year gilt yield reached 5.38% on Thursday, its highest level in over a week, as bond markets around the world came under selling pressure. Higher bond yields tend to raise borrowing costs for companies and governments, and traders are closely watching whether the Bank of England will respond. Reuters reported that markets now expect at least one 25-basis-point rate hike from the BoE this year.

    FT and Bloomberg UK profits rise

    Company filings show that the UK operations of the Financial Times and Bloomberg posted higher profits in 2025. The Financial Times increased its profit by GBP 6 million to just under GBP 15 million for the year. Bloomberg Index Services, a UK subsidiary of the US firm that supplies data through the Bloomberg Terminal, saw profit rise by $12 million to around USD 125 million (GBP 94 million). Bloomberg attributed its 10% increase in turnover to ‘growth from new business and the expansion of existing customer relationships,’ while the FT cited growth in digital subscriptions and sales from live events.

    Harworth backs Peel Holdings takeover

    Land developer Harworth has recommended that shareholders accept a GBP 632 million takeover offer from its largest shareholder, Peel Holdings. The 187p-per-share bid represents a 30% premium over Harworth’s closing price on the day Peel first made its offer. The firm told investors the deal gives them the ‘opportunity to realise the entirety of their interests in cash against the current uncertainty presented by a weak macroeconomic backdrop.’

    Global markets mixed

    In the US, the Dow Jones fell 161.61 points, or 0.31%, to 51,349.98. The S&P 500 slipped 0.02% to 7,704.13, while the Nasdaq Composite edged up 0.01% to 26,939.37. In Asia, Tokyo’s Nikkei 225 gained 1.3% to 66,364.2. China’s Shanghai Composite declined 1.22%, Hong Kong’s Hang Seng fell 1.03%, and South Korea’s Kospi rose 0.9%. In India, both the Nifty 50 and the Sensex finished lower.

    This article is for informational purposes only and does not constitute investment advice.

  • US 30-Year Bond Yield Reaches Highest Level Since 2004 Amid Sustained Selloff

    US 30-Year Bond Yield Reaches Highest Level Since 2004 Amid Sustained Selloff

    Overview

    The 30-year US Treasury yield climbed to 5.444% on Thursday, marking its highest level since 2004. The rise came as persistent selling pressure in global bond markets, combined with stronger-than-expected US economic data, renewed fears of inflation and further interest rate hikes by the Federal Reserve.

    The 10-year Treasury yield also rose, reaching 5.145%. Bond prices move inversely to yields, so the increase reflects continued weakness in Treasury prices.

    Strong US Data Fuels Rate Hike Bets

    The yield surge followed better-than-expected US economic figures. The S&P Global Purchasing Managers’ Index for services climbed to 58.7 in September from 56.5 in August, the highest level in nearly five years. The Manufacturing PMI also rose to 56.7, the highest in more than four years.

    According to market estimates, the Federal Reserve now has a 66% chance of raising interest rates in October, up from 53% earlier in the day. Just one month ago, the probability stood at less than 10%. The Fed increased rates during the previous week for the first time since 2023.

    Global Bond Markets Remain Under Pressure

    The pressure extends beyond US Treasuries. Bond markets worldwide have faced selling pressure for months due to higher energy prices, resilient economic growth, and concerns about elevated government debt. The US-Israeli war on Iran has pushed up energy prices, adding another source of inflationary pressure.

    Investors are closely watching Treasury auctions after a weak five-year note auction on Wednesday. The seven-year note auction later Thursday was expected to provide further clues about investor demand. The two-year US Treasury yield fell 1.8 basis points to 4.877%, while the gap between two- and 10-year yields stood at a positive 24.7 basis points.

    Jefferies chief US economist Thomas Simons noted that the long end of the Treasury market was ‘trading a bit better’ as investors assessed the latest moves.

  • Bitcoin Slumps Below $84,000 as Surging Bond Yields and Oil Prices Deepen Crypto Sell-Off

    Bitcoin Slumps Below $84,000 as Surging Bond Yields and Oil Prices Deepen Crypto Sell-Off

    Bitcoin and Altcoins Tumble Amid Rising Bond Yields and Oil Prices

    The cryptocurrency market experienced a sharp decline on Thursday as global bond yields surged and oil prices climbed, pressuring risk assets across the board. Bitcoin fell to approximately $83,830 after trading near $87,000 earlier in the week. Ethereum dropped to around $2,670, while several major altcoins recorded double-digit losses.

    Treasury Yields and Oil Prices Fuel the Sell-Off

    The US 10-year Treasury yield rose above 5%, reaching levels not seen since 2007, as stronger economic data and hawkish Federal Reserve comments drove the move. The Fed’s recent 25-basis-point rate hike and commitment to returning inflation to 2% have reinforced expectations for further tightening. Meanwhile, crude oil prices added to inflation concerns, with gasoline and diesel prices rising sharply since January. Higher bond yields reduce the appeal of speculative assets like cryptocurrencies, as government debt offers more attractive returns.

    Altcoins Hit Hard as Profit-Taking Accelerates

    Tokens that had posted strong gains in recent weeks were among the hardest hit. Arbitrum fell more than 14% in 24 hours, trading about 15% below its weekly high after a 263% rally from August lows. Uniswap dropped 13.78% to around $9.25, following a 240% surge from its August low. Other tokens such as Pepe, Worldcoin, and Dogecoin also gave back gains. Technical indicators, including Relative Strength Index readings above 70, suggested many cryptocurrencies had entered overbought territory.

    Broader Market Retreat

    The selling extended beyond crypto. Gold and silver declined as rising interest rates made yield-bearing assets more competitive. US stock futures also weakened, with Dow Jones Industrial Average futures falling about 142 points and S&P 500 futures dropping around 25 points. Despite the losses, Bitcoin remained higher for September overall, supported by a more favorable US regulatory environment earlier in the month.

    Market participants now face uncertainty over whether the decline is a temporary pullback or the start of a broader bearish trend. With the Federal Reserve signaling further rate hikes and bond yields continuing to climb, the outlook for risk assets remains cautious.

  • Bitcoin Holds Near $64,600 as S&P 500 Surges $2.1 Trillion on AI Rally

    Bitcoin Holds Near $64,600 as S&P 500 Surges $2.1 Trillion on AI Rally

    The S&P 500 has added $2.1 trillion in market value this month, driven by an AI-led rally, while Bitcoin trades near $64,600 with limited gains. Crypto-specific pressures, rising bond yields, shrinking stablecoin supplies, and uneven ETF demand have restrained Bitcoin’s upside despite stronger sentiment across US equities.

    The S&P 500 has gained 3.12% this month, boosting its market cap by about $2.1 trillion—almost matching the entire global cryptocurrency market. Bitcoin, however, has risen only 2% in the same period, hovering near $64,600. Analysts attribute the divergence to AI-focused stock demand, crypto market headwinds, higher bond yields, and cautious trader positioning.

    AI Stocks Drive Wall Street’s Gains

    The S&P 500 now holds a record market value near $70.5 trillion, with the index around 7,723 points. The Nasdaq and Dow have also advanced as investors pour capital into large technology companies.

    Adam Haeems, head of asset management at Tesseract Group, noted that the equity rally centers on sectors with limited ties to Bitcoin. “Partly because the equity rally is being driven by areas to which bitcoin has little direct exposure, particularly AI and semiconductor stocks,” he said.

    Lower oil prices have provided additional support to listed companies through reduced operating costs. Haeems suggested Bitcoin may benefit later from softer inflation expectations and potential Federal Reserve policy changes, though uncertainty around the September outlook limits that path.

    Paul Howard, senior director at Wincent, linked the gap to concentrated equity demand. “The stock rally is biased towards AI and mega-caps which doesn’t necessarily translate into crypto flows,” he said.

    Crypto Pressures Limit Bitcoin Demand

    Bitcoin faces sector-specific challenges that do not affect equities directly, including the $120 million Coldcard exploit, uncertainty surrounding the CLARITY Act, and Strategy’s recent Bitcoin sales.

    Haeems said these events have weakened sentiment without triggering a wider credit crisis or forced selling cycle. Strategy has sold Bitcoin for three consecutive months, adding concern for traders monitoring corporate demand.

    Rising bond yields also make government debt more attractive than non-yielding crypto assets. Real Treasury returns are at their highest since 2008, encouraging some capital to stay outside digital asset markets.

    Stablecoin supplies reflect the same pressure. Haeems noted that USDT supply dropped from about $190 billion in April to $183 billion, while USDC supply declined from $79.5 billion to $72 billion over the same period.

    Traders Watch October, ETF Flows

    Markus Thielen, founder of 10x Research, said many traders expect Bitcoin’s four-year cycle to produce an October bottom, prompting them to wait rather than build positions during the equity rally.

    However, Thielen said Bitcoin’s ability to hold steady despite the Federal Reserve’s firm stance could support another reading. “Traders are underestimating the upside risk from a less hawkish Fed, and overlooking the possibility that the four-year cycle has already bottomed,” he said.

    ETF activity has been mixed. US spot Bitcoin funds recently recorded $61.53 million in outflows, ending three weeks of modest inflows. They then attracted $626 million this week, their strongest total since early May.

    Giottus CEO Vikram Subburaj said several consecutive inflow days would help confirm stronger institutional demand. He identified Bitcoin support between $63,000 and $63,400, with resistance from $64,500 to $66,000.

    Wintermute noted that some ETF demand may reflect arbitrage rather than direct bullish positioning. Analysts expect possible fourth-quarter catalysts from regulatory progress and renewed stablecoin growth.