Stocks Hit Record as US Treasury Yields Hold Above 5-month lows

The global stock markets hit an intraday record on July 12 as the US Treasuries yields remained above five-month lows. The investors search for signs of whether the coronavirus Delta variant could dent the global growth or not. Several concerns about the slow rate of economic recovery due to the surge of the variant helped to send the yield of the US Treasury note benchmark to a five-month low of 1.25%. The yield climbed to the height of 1.78% in March as the growth expectations picked up with increasing vaccination rates.

Some analysts also cited that a lack of supply as the reason for the decline in the yields. The Treasury is going to sell $24 billion 30-year bonds on July 13. It sold $38 billion in 10-year notes and $58 billion in three-year notes. Earnings season to get underway, along with major inflation data on producer and consumer prices. The statements from Fed Chair Jerome Powell will also help investors to get an idea about the economic growth and the policy path of the central bank.

Stock Market Index Rise

The Benchmark 10-year notes declined 2/32 in the price for giving the yield of 1.3628% on July 9. On Wall Street, the equity gains were modest, and the financials were among the best-performing sectors. The Dow Jones Industrial Average increased up to 85.84 points, or to 34,956, or 0.25 percent. The S&P 500 achieved 7.73 points and led to 4,377.28, or 0.18 percent. Moreover, the Nasdaq Composite added 0.79 more points or 0.01 percent and reached 14,702.71.

European equities also progressed higher, reaching an intraday record of 461.01. There was a rise in the pan-European STOXX 600 index to 0.66 percent. The gauge of MSCI of stocks around the world gained 0.41 percent after hitting a record of 727.02.

The testimony of Powell will be closely looked at after the People’s Bank of China moved to free up $154 billion to buttress the economic recovery. The European Central Bank said that it would discuss the reformation to its guidance on policy direction in the upcoming meeting. Concerns about the downfall of economic growth on the crude prices are exceeding the possibilities of tighter supply after the producers’ talks were stalled. The crude of the US recently declined 0.97 percent to $73.84 per barrel. Brent was down 0.74 percent and was at $74.99.

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