Asian shares fell Thursday, tracking a decline on Wall Street as another rise in bond yields rattled investors who worry that higher inflation may prompt central banks to raise ultra-low interest rates. Benchmarks were lower in most major markets and the dollar rose against the Japanese yen. Shares have yoyo'd recently with fluctuations in bond yields. When yields rise quickly, as they have in recent weeks, it forces Wall Street to rethink the value of stocks. Technology stocks are most vulnerable to this reassessment after having soared during the pandemic, making them look pricier than the rest of the market. US government bond yields rose Wednesday after easing a day earlier. The yield on the benchmark 10-year Treasury note was steady at 1.47 per cent early Thursday. The dial ticks back to rising bond yield concerns, between that and the broad risk-on mood derived from the global economic recovery, Jingyi Pan of IG said in a report. She noted that stocks more affected by ups an
Another rise in bond yields rattled investors
Higher U.S. Treasury yields threatened gold's appeal as an inflation hedge as they increase the opportunity cost of holding bullion
Spot gold fell 0.6% to $1,727.11 an ounce by 1016 GMT
The ratio between the nation's benchmark 10-year yield and the BSE Sensex index's current earnings yield is now at the highest level since 2001, dimming the appeal of equities
The progress in the US stimulus package and gross domestic product (GDP) growth in India for the quarter ended December 31, after two consecutive quarters of contraction, also helped sentiment
Last week's sell-off in global bonds stabilized after central banks from Asia to Europe provided reassurance that policy support remains in place
With gold prices on a decline, thanks to a rise in bond yields - globally and in India - analysts say investing in the yellow metal and the SGB scheme makes little sense right now
Here's a selection of Business Standard opinion pieces for the day
Higher margins more than compensated for flat revenues during the quarter
None can question the central bank's policy of leaning against the rising yield but the problem is with the way it is being done
According to a recent report by BofA Securities, 31 Nifty50 companies are exposed to commodity-related risks and cautions that the full impact of the rise in commodity prices is yet to play out
In 2012, India had seen foreign portfolio investor (FPI) flows of Rs 1.3 trillion ($24.5 billion) and in 2013 about Rs 1.1 trillion ($20 billion)
Bond yields in the US are up nearly 100 basis points from their lows in June last year, while the Nifty P/E remains close to a 25-year high of around 40x
Primary dealers had to again rescue 5-yr notes even as RBI went for uniform price-based auction
A rise in commodity prices has fanned inflation risks, pushing bond yields higher. That apart, the US launched airstrikes in Syria on Thursday, which further dented global mood
The Dow and the S&P 500 notched their biggest daily decline since late January
Benchmark US Treasury yields held close to a one-year peak hit in the previous session
Rate hikes will be something which we can expect when the borrowing programme comes down and economic growth prospects are strong, Nagarjan said
Central bank governor welcomes blockchain tech, but voices major concerns on cryptocurrency