LONDON - Global stock markets traded at fresh record-high levels on Wednesday while US Treasury and euro zone government bond yields ticked down as investors braced for the world's largest economy to start cutting pandemic-era monetary stimulus.
The Tokyo bourse was closed for a public holiday while MSCI's broadest index of Asia-Pacific shares outside Japan lost 0.05 percent . "Negative real rates is a very powerful force," he added, as investors wonder whether equities are at risk of losing their edge against other asset classes with the direction of travel for interest rates firmly on the rise.
"We remain of the view that the Fed will seek to keep its interest rates below the rate of inflation in the long run, as it remains implicitly focused on the high level of debt in the US economy," he added. At the same time, US benchmark 10-year Treasury yields were also lower at 1.5296 percent , off last month's recent top of 1.7 percent .