Financial Markets Daily Report26 February 2021
The global stock rout deepened on Thursday as the sell-off in US Treasuries continued affecting markets across the world. The yield on 10-year US sovereign bonds rose sharply to 1.53%, and the 5-year yield jumped 21 basis points, the second-largest one day increase seen in the past decade, as investors anticipated large stimulus measures.
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- The global stock rout deepened on Thursday as the sell-off in US Treasuries continued affecting markets across the world. The yield on 10-year US sovereign bonds rose sharply to 1.53%, and the 5-year yield jumped 21 basis points, the second-largest one day increase seen in the past decade, as investors anticipated large stimulus measures.
- The sell-off in fixed-income markets also affected stock markets. The S&P 500 was down 2.5%, while the tech-heavy Nasdaq fell 3.5%, its worst day in months.
- In Europe, the Eurostoxx50 decreased by 0.6% and futures were sharply down by Friday morning.
- European sovereign bond yields also rose, although less sharply than in the US given the lower inflationary pressures in the continent as the recovery is expected to be more gradual. 10-year yields on sovereign bonds rose 7bp in Germany, 9bp in Spain and France, and 11bp in Italy.