HONG KONG : Global stocks and U.S. bond yields rose on Tuesday, as a U.S. regulator-backed deal by First Citizens BancShares to buy failed Silicon Valley Bank soothed wider worries about problems in the sector.
Top U.S. banking regulators said on Monday that they planned to tell Congress that the overall financial system remains on solid footing after recent bank failures, but will comprehensively review their policies in a bid to prevent future collapses. "On one day, the market expects maybe a 25 basis points or maybe a 50 basis points rate hike. Just in a matter of one or two days, that outlook is changed to 50 basis points rate cuts in the second half of the year," he said.
Benchmark 10-year yields rose to 3.5317 per cent, up from its U.S. close of 3.528 per cent on Monday. They are also up from a six-month low of 3.285 per cent reached on Friday, but remain below a 15-year high of 4.338 per cent from Oct. 21.