June 19, 2021
Economy

Stocks hover near highs as bond yields dip

World stocks hovered near record highs and U.S. bond yields fell on Wednesday as some of U.S. President Joe Biden’s stimulus efforts appeared to be on the rocks, boosting the appeal of technology stocks as future inflation pressures ease.

A little noticed ruling by the Senate parliamentarian in late May said Democrats can only use “reconciliation” once in a fiscal year to circumvent legislation that requires 60 votes.

Democratic fiscal packages in Congress are rapidly shrinking, leading to a net outcome that inflationary pressures are set to recede, said Sebastien Galy, senior macro strategist at Nordea Asset Management.

The yield on benchmark 10-year U.S. Treasury notes fell 3.2 basis points to 1.4958%, down from 1.528% late on Tuesday.

Yields plunged as traders in part were forced to unwind short positions in Treasuries, said Joe LaVorgna, chief economist of the Americas at Natixis.

Read full article here: www.reuters.com