Rates on short-term US Treasury bills up at weekly auction

Dow suffers biggest point drop ever as stocks close broadly lower

Dow suffers biggest point drop ever as stocks close broadly lower

Given the ugly numbers Monday, at least, they may have finally taken this last lesson to heart. That ratio is about twice as high as the average from the past century, a sign that stocks have likely been overvalued.

Now, investors are suddenly skittish.

2-year -8.3 bps @ 2.058%.

The major USA stock indexes fell sharply last week with the S&P 500 Index and Dow Jones Industrial Average posting their worst week since January 2016.

That is not to say the market is collapsing. S&P 500 e-minis were down 20.75 points, or 0.75 percent, with 328,542 contracts traded. Still, it remains close to historic highs and 21 percent above where it stood a year ago.

The CBOE Volatility Index .vix , the most widely followed barometer of expected near-term volatility for the S&P 500 Index, was trading at 18.62, its highest since November 2016. The "VIX" has spent months at historically low levels, reflecting a placid market mood that seems to have evaporated over the past week.

Iran Accuses US of "Shamelessly Threatening" Russia with Nuclear Weapons
China's Defense Ministry said its military activities were defensive and its nuclear arsenal was the "minimum level" required for its security.

The Labor Department reported that the US economy had added 200,000 jobs in January, beating a Reuters economists' poll of 180,000.

In recent weeks, the shift in sentiment has played out across the world's largest financial markets.

The recent strengthening of stocks in India despite rising bond yields suggested that the market was expecting a strong earnings recovery.

"It's a legitimate concern, when inflation spikes up a little bit, that people should evaluate how is this going to affect profits and how is this going to affect the Fed", said Jonathan Golub, chief US equity strategist at Credit Suisse. Add to these, the Fed's Beige Book report for January which found that: "Most Districts cited on-going labor market tightness and challenges finding qualified workers across skills and sectors".

In a unusual way, investors are nervous that the global economy is doing too well.

Friday's selloff contributed to the broad decline in USA government paper within the last week as inflation fears, strong economic data and an announcement of bigger Treasury auctions drove yields higher.

Apple Will Examine Cases of an iPhone X Call Delay Bug
Coming the iPhone 8 Plus , the 64GB variant of the smartphone now costs around Rs. 77,560 and the 256GB variant costs Rs. 91,110. The three-year-old iPhone 6S will start at Rs 42,900 in India for the 32GB variant, while the 128GB version will cost Rs 52,100.

Overseas investors have dominated our bond holdings due to the historically low level of internal savings in New Zealand i.e. we have to offer a yield premium to attract investors into New Zealand to fund our external Balance of Payments deficit and internal budget deficit, as we do not have sufficient savings ourselves to fund these shortfalls. Given the US Federal Reserve's balance sheet run-off and the European Central Bank's expected taper by end of 2018, global liquidity will turn from an expansionary flow to a contractionary flow by Q4 2018. The United States and China led the way, but the expansion now includes Europe, long mired in a debt crisis, and perennially laggard Japan. But higher wages could also be the start of higher prices - that is, faster inflation.

Rising growth suggests rising inflation and rising inflation means higher T-bond yields, which have already been the case as the chart shows.

"We're reasserting that balance right now, the balance we haven't had for the last couple of years", he said.

Market expectations for Fed interest rate hikes also faded.

Shares sank more than 1 percent from Tokyo to Sydney, while S&P 500 Index futures were 0.6 percent lower.

The discount rates reflect that the bills sell for less than face value.

USA orders Wells Fargo to halt expansion over 'abuses'
Ironically, this sanction actually provides an element of cover for the lender, which has found growth to be a challenge lately. She's following in the footsteps of her predecessor at the Fed, Ben Bernanke , who joined Brookings in 2014.

Strong prospects of the Fed hiking interest rates in the next month has led to a spike in USA bond yields, which touched 2.89%, highest level in almost four years. A higher fiscal deficit forces the government to go for higher market borrowings.

Recommended News

  • France coach Brunel hoping to unearth new Michalak in Jalibert

    France coach Brunel hoping to unearth new Michalak in Jalibert

    The half-time scoreline, 9-3, was the joint lowest between these two sides in a Six Nations match. France led 13-12 with the clock in the red and Ireland struggling to get out of their half.
    New York Mets sign Todd Frazier to two year contract

    New York Mets sign Todd Frazier to two year contract

    Popular wherever he's been, the spirited Frazier has always drawn cheers from local fans when playing in the NY area. However, a slow free agent market and little need for a third baseman throughout the league hurt Frazier.
    Lok Sabha adjourns briefly amid protests by TDP members

    Lok Sabha adjourns briefly amid protests by TDP members

    The Union minister also said that the TDP will raise in Parliament all promises made for AP after its bifurcation in 2014. He had said that the TDP executive would in all probability meet on Sunday to take a final decision on the matter.
  • 'Solo: A Star Wars Story' Footage Finally Revealed

    'Solo: A Star Wars Story' Footage Finally Revealed

    Solo , well before the events of " Star Wars: A New Hope ", also talks of one day becoming the best pilot "in the galaxy". Reactions to the trailer on social media were mixed, with many praising Glover's brief appearances as Lando Calrissian .
    Uma Thurman Shares 'Kill Bill' Crash Video, Says Tarantino Was 'Deeply Regretful'

    Uma Thurman Shares 'Kill Bill' Crash Video, Says Tarantino Was 'Deeply Regretful'

    Over the weekend, Thurman detailed the on-set crash in Mexico that left her in a neck brace and with damaged knees. Weinstein's representative also sent photos that the spokesperson said "demonstrate the strong relationship Mr.
    Khaps not conscience keepers, says Supreme Court

    Khaps not conscience keepers, says Supreme Court

    It also asked for a ban on " khap panchayats " or self-appointed village courts. If a marriage is not permissible under law, there are courts to annul it.
  • The US considers restrictive measures against the export of oil from Venezuela

    The US considers restrictive measures against the export of oil from Venezuela

    Experts and analysts have also warned that such sanctions could have negative effects on the USA oil industry and consumers. Exports to the U.S. averaged more than 600,000 barrels a day between January and November a year ago , data from the U.S.
    Extreme-right shooter targeting shows no remorse

    Extreme-right shooter targeting shows no remorse

    Authorities ordered public transport halted and that students be kept inside schools, which are open on Saturdays. That has drawn sharp rebukes that Salvini is using the migrant crisis to foment xenophobia for political gain.
    Mission: Impossible - Fallout Trailer: Game on for Cruise fans

    Mission: Impossible - Fallout Trailer: Game on for Cruise fans

    Henry Cavill , Angela Bassett , Rebecca Ferguson , Ving Rhames , Simon Pegg and Alec Baldwin also star in the movie. Christopher McQuarrie wrote and directed the last Mission: Impossible movie, Mission: Impossible - Rogue Nation .
  • Lancaster woman bemused by mention in viral Paul Ryan tweet

    Lancaster woman bemused by mention in viral Paul Ryan tweet

    Ryan was responding to an Associated Press story about the controversial tax overhaul's effect on Americans' paychecks. Yesterday, Ryan posted a Tweet noting the secretary's increase and linking to the AP story.
    Magnitude 6.1 quake  jolts Taiwan coast

    Magnitude 6.1 quake jolts Taiwan coast

    There were no immediate reports of damage and Taiwan´s high-speed rail system and local railways were operating as normal. At this time, there are no reported injuries or damages associated with this natural disaster .
    Samsung's Lee Jae-yong released from prison

    Samsung's Lee Jae-yong released from prison

    Prosecutors demanded a sentence of 12 years while lawyers for the Samsung boss said he was a victim of extortion by Park. Lee's case brought down the government of former President Park Geun-Hye, and he has been in jail for almost a year.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.