U.S. Treasuries slipped on Thursday on a report that Presidentelect Joe Biden will announce a stimulus package as big as 2 trillion, while Japanese stocks surged to a new threedecade peak as investors extended bets on a global growth rebound.
The yield on benchmark 10year U.S. Treasuries rose two basis points to 1.1105 after CNN reported on the possibility Biden could spend 2 trillion, which is much more than market expectations and which would be funded by borrowing.
Japans Nikkei closed up 0.9 at its highest level since August 1990. It has gained 25 since the end of October.
MSCIs index of Asia shares outside Japan was steady a whisker short of Mondays alltime high. SP 500 futures, FTSE futures and EuroSTOXX 50 futures all rose about 0.2.
Treasury yields had tempered their surge this year on Wednesday as reassurances from the Federal Reserve about its purchase program calmed a heavy bond selloff and investors bet a big spending agenda can clear a Democratcontrolled Congress.
Biden is due to outline his economic plans later on Thursday and U.S. Federal Reserve Chairman Jerome Powell will also speak, either one of which could set yields rising again.
The number one question for global markets and equities will be when will the Fed start tapering, said Frank Benzimra, head of Asia equity strategy at Societe Generale in Hong Kong.
This is where you can get some concern… but at the moment it is something that is a bit premature. We are in a context where you have…