Financial Markets… U.S. Treasuries gained for a fifth day on Tuesday, with the benchmark 10-year note yields sliding to 2.84%, as investors await on a Federal Reserve announcement tomorrow on the future of U.S. stimulus program. U.S. government bonds have declined 3.6% this year through yesterday, while they gained 2% last year.
Financial Markets… European stocks extended their gains on Monday, after reaching a 5-year high last week, as Lawrence Summers’ withdrawal from the Federal Chairman race eased the risk of an early end of U.S. monetary stimulus. The benchmark Stoxx Europe 600 Index rose 0.7% to the highest level since June 2008 as the German DAX index rallied 1.3% to a record high level.
The decline of risk appetite was evident in the government bond markets as German yields sank 6 basis points to 1.98% while 10-year US Treasuries yields slipped 4bp to 2.88%.
Financial Markets…US stocks rose for a second day as technology and automobile companies led gains and investors awaited the Federal Reserve’s economic outlook survey. S&P 500 increased 0.6% to 1,648.91 in morning trading in New York.
The MSCI Emerging Markets Index added 0.3% as India’s S&P BSE Sensex index climbed 1.8%, rebounding from yesterday’s biggest decline in more than two weeks. Benchmark gauges in Indonesia and the Philippines lost at least 1.9%.