Global bond market steadies after sharp sell-off

{"text":[[{"start":9.95,"text":"Global bond markets steadied on Friday after a sell-off that pushed US borrowing costs to their highest level since 2002 and sparked volatility in European sovereign bonds. "}],[{"start":22.1,"text":"Yields on 10-year US Treasuries were flat at 5.24 per cent, while European bonds were mixed after a volatile day of trading on Thursday. Bond yields fall when prices rise. "}],[{"start":35.55,"text":"German Bund yields dropped 0.09 percentage points to 3.43 per cent as investors sought safety in the Eurozone’s haven debt market. "}],[{"start":45.349999999999994,"text":"The 10-year French government bond yield fell 0.01 percentage points to 4.91 per cent, having jumped as much as 0.1 percentage points on Thursday after the release of a draft 2027 budget reignited concerns over the state of France’s public finances. "}],[{"start":64.44999999999999,"text":"The moves pushed the spread or additional rate being charged to France compared with Germany to 1.5 percentage points, its highest since 2012."}],[{"start":73.39999999999999,"text":"Equivalent Italian bonds had been caught up in the selling on Thursday but were flat on Friday at 4.71 per cent. "}],[{"start":80.39999999999999,"text":"Bonds gave back some earlier gains after Eurozone inflation hit a three-year high of 3.8 per cent, above expectations, although core inflation was in line with expectations."}],[{"start":92.05,"text":"The euro, which took a sharp drop on Thursday amid the volatile trading, was down 0.1 per cent against the dollar at $1.123. "}],[{"start":null,"text":"

"}],[{"start":100.25,"text":"Thursday’s moves “were reminiscent of the euro crisis in many respects, with sovereign contagion a big talking point,” said Henry Allen, macro strategist at Deutsche Bank. "}],[{"start":110.75,"text":"Rates strategists at Dutch bank ING said market sentiment was “turning sour” on Europe’s debt dynamics."}],[{"start":117.75,"text":"The stabilisation in markets on Friday was helped by a fall in oil prices. The global benchmark Brent crude was down 2.1 per cent at $100.15 a barrel. "}],[{"start":129.55,"text":"Investors will be watching Eurozone inflation data on Friday for the latest sign of how the European Central Bank might respond to the energy crisis unleashed by the conflict in the Middle East. "}],[{"start":141.3,"text":"Global stocks rose on Friday, with the Stoxx Europe 600 climbing 0.4 per cent and futures tracking the S&P 500 also up 0.4 per cent. "}],[{"start":153.5,"text":"Investors said they remained on high alert for further selling and the impact of higher bond yields on global markets."}],[{"start":161.25,"text":"“We could see further spikes in yields,” said Grace Tam, deputy chief investment officer for Asia at BNP Paribas Wealth Management. “That could tighten financial conditions. That doesn’t bode well for risk assets, especially equities.”"}],[{"start":176.4,"text":"Data visualisation by Martin Stabe"}],[{"start":185.95000000000002,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1790940227_1949.mp3"}