- Worldwide coronavirus cases surpass 110.7 million with over 2,447,000 official deaths.
Markets are heading into the close of this week in consolidation mode with all eyes on longer-term interest rates. US 10 and 30yr yields lead the move higher this week breaking through significant levels and eventually trading to their highest levels in over 12 months. The rising bond yields eventually began to weigh on US stocks with indices trading to a two-week low overnight. Bond yields are rising as investors are upgrading their outlook for economic growth and inflation. Biden’s $1.9trn stimulus plan is helping to underwrite those expectations. Most economists and central banks believe any uptick in inflation will only be temporary, but with all the money creation that’s occurred in the world over the past year, it worth considering the risk that inflation may not be as transitory as the experts believe.
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