Reuters: British bonds were on track for their best day in more than a month on Thursday and stocks jumped after the Bank of England held interest rates steady for a second consecutive meeting. Bonds and stocks were already trading higher after the Federal Reserve kept interest rates on hold on Wednesday, with the BoE decision adding to a feeling among investors that the next move in borrowing costs will be down.Yields on benchmark 10-year UK bonds, known as Gilts, fell as low as 4.
Global bond yields have pushed higher over the last two months, driven by strong U.S. economic data, sending the 10-year Treasury yield above 5% last week for the first time since 2007. Yet that yield – which sets the tone for borrowing costs around the world – was last down 12 bps on Thursday at 4.657%. Before the U.S. central bank’s policy decision on Wednesday, the U.S. Treasury said it would slow the pace of increases in its longer-dated debt auctions in the next three months.
The Japanese yen was 150.41 per dollar, keeping traders nervy and looking for signs of intervention from Japanese authorities. The yen has had a whirlwind week, touching a one-year low against the dollar and 15-year low against the euro on Tuesday after the Bank of Japan tweaked its yield curve control policy.
On the Johannesburg Stock Exchange, the blue-chip Top-40 index closed up 2.43%, while the broader all-share index was 2.36% higher. South Africa’s benchmark 2030 government bond was stronger, with the yield down 2 basis points at 10.365%.Reuters: Stocks were headed for their biggest weekly rise in a year on Friday, while bonds rallied and the dollar was on the back foot as investors cheered a pause in U.S. interest rate hikes. U.S. jobs data due later in the day is the next major focus.