Bond rout pushes cash back in to stocks

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Asian equities hit three week highs on Wednesday as cash fleeing tumbling bond markets flowed back toward big tech and other beaten-up sectors, while the Ukraine conflict's potential to further hit supplies kept oil and commodity prices high.

Bond markets extended their retreat as investors braced for the Federal Reserve to take an even more aggressive approach to taming inflation. Two-year Treasury yields are up 76 basis points in March and 10-year yields are up almost 60 bps to 2.4154%, the highest since 2019.

"The move higher in yields stretching over the past two weeks has been the largest one since the global financial crisis and even then the moves were within a couple of basis points of what we are experiencing now," said NatWest Markets' rates strategist Jan Nevruzi.

 

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