ANL 34.10 Decreased By ▼ -0.15 (-0.44%)
ASC 13.65 Increased By ▲ 0.30 (2.25%)
ASL 23.40 Increased By ▲ 0.80 (3.54%)
AVN 85.60 Increased By ▲ 1.90 (2.27%)
BOP 7.70 No Change ▼ 0.00 (0%)
BYCO 9.44 Increased By ▲ 0.07 (0.75%)
DGKC 111.51 Increased By ▲ 1.31 (1.19%)
EPCL 48.99 Decreased By ▼ -1.90 (-3.73%)
FCCL 22.85 Increased By ▲ 0.09 (0.4%)
FFBL 25.47 Decreased By ▼ -0.23 (-0.89%)
FFL 15.33 Increased By ▲ 0.03 (0.2%)
HASCOL 8.94 Decreased By ▼ -0.06 (-0.67%)
HUBC 78.43 Decreased By ▼ -0.57 (-0.72%)
HUMNL 6.13 Increased By ▲ 0.29 (4.97%)
JSCL 19.14 Increased By ▲ 0.44 (2.35%)
KAPCO 40.50 Increased By ▲ 1.11 (2.82%)
KEL 3.72 Increased By ▲ 0.04 (1.09%)
LOTCHEM 14.20 Decreased By ▼ -0.15 (-1.05%)
MLCF 42.75 Increased By ▲ 0.45 (1.06%)
PAEL 30.90 Decreased By ▼ -0.17 (-0.55%)
PIBTL 9.52 Increased By ▲ 0.07 (0.74%)
POWER 8.61 Increased By ▲ 0.17 (2.01%)
PPL 82.50 Decreased By ▼ -0.80 (-0.96%)
PRL 23.09 Increased By ▲ 0.32 (1.41%)
PTC 9.00 Decreased By ▼ -0.20 (-2.17%)
SILK 1.38 Decreased By ▼ -0.02 (-1.43%)
SNGP 38.90 Increased By ▲ 0.31 (0.8%)
TRG 165.00 Increased By ▲ 1.78 (1.09%)
UNITY 35.80 Increased By ▲ 0.87 (2.49%)
WTL 1.53 Increased By ▲ 0.08 (5.52%)
BR100 4,846 Increased By ▲ 46.43 (0.97%)
BR30 24,817 Increased By ▲ 123.55 (0.5%)
KSE100 45,175 Increased By ▲ 231.06 (0.51%)
KSE30 18,470 Increased By ▲ 86.89 (0.47%)

Coronavirus
VERY HIGH
Pakistan Deaths
18,993
7824hr
Pakistan Cases
861,473
344724hr
Sindh
292,644
Punjab
319,365
Balochistan
23,447
Islamabad
78,200
KPK
124,484
Markets

Yields rise as European central banks seen as less accommodative

NEW YORK: Benchmark US Treasury yields rose to six-week highs on Thursday on the likelihood that central banks in Eu
29 Jun 2017

NEW YORK: Benchmark US Treasury yields rose to six-week highs on Thursday on the likelihood that central banks in Europe will become less accommodative, before bonds pared price losses as stocks declined.

European Central Bank President Mario Draghi said on Tuesday the ECB might tweak its stimulus so it does not become more accommodative as the economy recovers. Sources on Wednesday, however, said he had not intended to signal imminent tightening.

Bank of England Governor Mark Carney also said on Wednesday that a rise in British interest rates is likely to be needed as the economy comes closer to running at full capacity.

"What's going on in Europe is really what's driving us here," said Brian Daingerfield, a macro strategist at NatWest Markets in Stamford, Connecticut.

Position squaring before month-end and the end of the first half of the year may also be behind the bond weakness, said Lou Brien, a market strategist at DRW Trading in Chicago.

Benchmark 10-year notes fell 14/32 in price to yield 2.27 percent, after earlier rising to 2.30 percent, the highest since May 17.

Treasuries pared price losses as stocks declined.

The US economy will take focus on Friday when personal income and consumption data will be evaluated for inflation signals.

"Another weak number may be a factor in the pace of rate hikes going forward," said Brien.

St Louis Fed President James Bullard said on Thursday that there is nothing left for the Fed to do on interest rates and the natural next step for the central bank would be to start trimming its balance sheet.

Data on Thursday showed the US economy slowed less sharply in the first quarter than initially estimated due to unexpectedly higher consumer spending and a bigger jump in exports.

The number of Americans filing for unemployment benefits edged up last week, but the underlying trend remained consistent with a tight labor market, other data showed.

The Congressional Budget Office (CBO) on Thursday estimated that the U.S. will have a budget deficit of $693 billion this year, $134 billion more than its prior estimate made in January.

The CBO also said that Congress will need to raise the debt limit by "early to mid-October."

Copyright Reuters, 2017