Treasury 10-year Yields Reached Their Highest Levels In 2024 – US Market Wrap.

Stocks fell as bond yields rose following strong economic data and a rally in commodities, which fueled speculation that major central banks will keep interest rates higher for longer.

Better-than-expected data on US job openings and factory goods orders fueled scepticism about the pace of Federal Reserve easing, reigniting the “good news is bad news” trade. With traders projecting fewer rate cuts in 2024 than the Fed, 10-year yields rose to their highest level since November. That weighed on the equity market, which had been ignoring the repricing of central-bank bets in recent months during a wild rally.

Following hotter-than-expected data in various parts of the world, the global version of Citigroup’s Economic Surprise Index, which measures the difference between actual releases and analyst expectations, is nearing its highest level in a year. Just this week, the two largest economies, the United States and China, reported strong manufacturing numbers.

The S&P 500 experienced its worst day in nearly a month. Tesla suffered the most losses among megacaps. A gauge of small caps fell nearly 2%. The VIX, Wall Street’s favourite volatility metric, jumped. US 10-year yields increased four basis points to 4.35%. Oil rose to $85, copper rallied, and gold remained near record highs. Bitcoin plummeted.