Shares of the at-home retainer company plummeted 28% on its first day of trading yesterday, making it the worst market debut of a unicorn in 2019. Yahoo Finance's Dan Roberts joins Brian Sozzi on 'The Ticker' to discuss.
Shares of the at-home retainer company plummeted 28% on its first day of trading yesterday, making it the worst market debut of a unicorn in 2019. Yahoo Finance's Dan Roberts joins Brian Sozzi on 'The Ticker' to discuss.
(Bloomberg) -- Bitcoin neared an all-time high on Monday as bullish sentiment gathered steam ahead of a listing by the largest U.S. cryptocurrency exchange.The token rose as much as 2.6% to $61,229, the highest in nearly a month, before falling back to trade little changed. On March 13, Bitcoin reached a record of $61,742. The cryptocurrency is up almost ninefold in the past year, a return that towers above that of more familiar assets like equities or bullion.Against the backdrop of Wall Street’s growing embrace of crypto, the direct listing of digital-token exchange Coinbase Global Inc. is fanning interest. Coinbase is due to go public on the Nasdaq on April 14, the first listing of its kind for a major cryptocurrency company and a test of investor appetite for other start-ups in the sector.Meanwhile, exchange tokens, such as Binance Coin, are seeing their value rise ahead of Coinbase’s public debut as well. Binance’s, known as BNB, rose 23% Monday, according to CoinMarketCap.com. Huobi Token and KuCoin Token, among others, also gained.“A crypto company moving to IPO is a big milestone,” said Nick Jones, CEO and co-founder at cryptocurrency wallet Zumo. “It’s moves like this that make consumers feel safer with crypto and ultimately boost confidence in the space.”A growing list of companies are looking at or even investing in Bitcoin, drawn by client demand, price momentum and arguments that it can hedge risks such as faster inflation. Tesla Inc. earlier this year disclosed a $1.5 billion investment in Bitcoin and more recently started accepting it as payment for electric cars.Elsewhere, Goldman Sachs Group Inc. has said it’s close to offering investment vehicles for Bitcoin and other digital assets to private wealth clients. Morgan Stanley plans to give rich clients access to three funds that will enable crypto ownership. The deck of exchange-traded funds tracking the token is expanding, while Paypal Inc. and Visa Inc. have begun using cryptocurrencies as part of the payments process.A study by Dutch asset manager Robeco suggests that despite its high volatility, a 1% allocation to Bitcoin in a diversified multi-asset portfolio could be beneficial given its resemblance to gold and its near zero correlation to other asset classes.“In recent months, a clear and emphatic narrative that Bitcoin is becoming a store of value in the form of digital gold has developed,” according to Jeroen Blokland, a portfolio manager at Robeco.Other cryptocurrencies, such as second-ranked Ether, have also been climbing. The overall value of more than 6,600 coins tracked by CoinGecko recently surpassed $2 trillion.(Adds paragraph about exchange tokens)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Traders took a pause after the S&P 500 and Dow logged fresh record highs last week.
(Bloomberg) -- The battle for oil sales is set to become more intense as rising output from OPEC+ and the Middle East boosts the competitiveness of the region’s shipments, potentially forcing other suppliers to discount their barrels.The warning signs can be seen in the widening of a key price spread that’s used by traders to determine the affordability of cargoes from the Middle East against Brent-linked barrels. Right now, the gap is close to the widest in more than 16 months, and that doesn’t bode well for oil that’s priced against Brent.“There’s much cheaper crude, and a lot of it coming from the Middle East,” said Grayson Lim, a senior oil analyst at FGE. “Those Brent-linked cargoes will need to be offered at a huge discount for buyers in the region to snap up the barrels,” he said, referring to Asian users. “But if they’re heavily discounted, there’s a chance that Chinese buyers may come out to buy.”Earlier this month the Organization of Petroleum Exporting Countries and its allies decided to relax the deep production curbs that rescued prices from last year’s pandemic-driven collapse. The move will see more than 2 million barrels a day in supply restored in stages through to July amid expectations that the roll-out of vaccines will underpin further gains in energy consumption. So far, the plan has been defended by leading architect Saudi Arabia, with futures for Brent and West Texas Intermediate up almost a quarter this year.At the same time that the OPEC+ cartel is preparing to loosen off the taps, there have been continuous flows of clandestine Iranian oil to China. That -- plus planned maintenance of some North Sea fields, which will shrink the flow of Brent-linked barrels -- has pushed out the spread to the widest since late 2019, according to data compiled by Bloomberg.That’s a big reversal from just a few months ago. The so-called Brent-Dubai exchange of futures for swaps -- to give the marker its formal name -- showed Brent-Dubai at a small discount as recently as November. In October and September, Dubai-linked cargoes were also more costly on some days.The shift favoring Dubai-linked flows is likely to ripple through the market, prompting buyers to shop around and sellers to respond. In Asia, the widened spread means users will probably scoop up more affordable spot cargoes from the Middle East, unless oil from the Atlantic Basin and West Africa is slashed to stay competitive, according to traders who asked not to be identified.There may be signs of that already. Last week, Angola’s Sonangol Group again reduced the offer price for a Dated Brent-linked Saturno cargo for May, with the shipment eventually taken by China’s Unipec. Nigeria has also cut official selling prices of Qua Iboe and Bonny Light to the lowest since November.While Iran’s U.S.-sanctioned barrels aren’t counted under the formal OPEC+ quota system, the flows still contribute to downward pressure on Dubai-linked cargoes. The Iranian shipments taken by China reduce local demand for other spot cargoes. FGE estimates that Iran’s exports of crude, condensate and fuels could easily reach up to 2 million barrels a day in the coming months.Those flows will need to be accommodated alongside the additional barrels that OPEC+ now plans to push into the market over the coming months. Saudi Arabian Energy Minister Prince Abdulaziz bin Salman said last week that the alliance’s move to revive volumes was “a good decision.”“A wider spread is good for OPEC+ as it looks to recapture market share,” said Vandana Hari, founder of Vanda Insights in Singapore. Still, over time the differential will prove to be “self-correcting as Asian consumers will reduce their uptake of Atlantic barrels in favor of the Mideast sour, or the Atlantic discounts will widen.”(Adds comment from Vanda’s Hari in the final paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Two of the world’s most powerful money managers are joining forces to build a business on climate-change investing and raise one of the largest venture-capital funds dedicated to carbon-cutting technologies.BlackRock Inc. and Singapore’s Temasek Holdings Pte. formed a new firm, Decarbonization Partners, to take stakes in startups that have the potential to reduce the world’s reliance on fossil fuels and meet the goal of zero-carbon emissions in three decades. They’re committing a total of $600 million to the effort, including $300 million of seed capital for a $1 billion first fund, and raising the rest from outside investors.Eventually, Decarbonization Partners aims to manage billions across multiple funds, BlackRock Chief Executive Officer Larry Fink said in an interview with Bloomberg Television, adding, “I look at this as one of the greatest investment opportunities over our lifetimes.”Although renewables are displacing coal in power generation and electric vehicles can be cost-competitive with gasoline-driven cars, there are no viable solutions for problems like large-scale storage of energy or clean alternatives to carbon-intensive cement and steel production. Hydrocarbons still dominate much of the economy because they're cheap and easy to transport.Today, the pools of money dedicated to clean tech are growing, but managers tend to focus either on the bleeding edge of innovation or cash-flowing assets such as solar arrays and wind farms. BlackRock and Temasek are zeroing in on late-stage VC, the point at which startups need greater amounts of capital to manufacture at scale and expand into new markets.“As you look at the transition to greener options, there is obviously a need to address the gulf between the cost of what’s available today and the cost curve of those solutions,” Dilhan Pillay Sandrasegara, CEO of Temasek International, said. “That’s why private capital is required, to give these solutions a chance of making it to commercialization, to where the cost curves can be brought down to the levels of non-green options or even lower.” Breakthrough Energy Ventures, founded by Bill Gates in 2015, is currently the largest VC player in sustainable energy. It has raised more than $2 billion for early-stage investing, where the risk of failure is high, and anticipates holding its stakes for 20 years or longer. Another, Energy Impact Partners, has raised $1.7 billion, mainly from power utilities and industrial companies.More money is flowing into carbon-related investing. Dealmakers Chamath Palihapitiya and Ian Osborne plan to raise at least $1 billion for a publicly traded vehicle. Venture funding for climate tech startups totaled $16 billion in 2019, up from about $400 million in 2013, according to a PwC report published last year.The first climate-investing boom between 2006 and 2011 ended poorly, with venture funds losing more than half the $25 billion invested. One notable bankruptcy was Solyndra, a solar-panel startup with financing backed by U.S. taxpayers.Decarbonization Partners will operate like a traditional VC fund, asking investors to lock up money for about a decade and targeting annualized returns of about 20%. Fink offered $5 billion as a longer-term goal for assets under management.“We’re going to be testing this, we’re going to be building it, we’re going to have proof of concept and then we’ll see,” he said. “This is not tens of billions of dollars. It may lead to those types of large-scale investments, but it doesn’t need to be that large-scale.”Temasek, a state-owned investor that oversees about $230 billion, has pledged to reduce net-carbon emissions by its portfolio companies to half their 2010 level by 2030 and to zero by 2050. Because it controls Singapore Airlines, one of Temasek’s priorities is finding a sustainable and cost-effective alternative to jet fuel. Pillay and Fink described their shared interest in making green hydrogen a practical replacement for fossil fuels. Decarbonization Partners also is targeting technologies in battery storage, autonomous driving and power grid reliability, as well as materials and process innovation for industries and infrastructure.As the world’s largest asset manager, New York-based BlackRock has the reach and client relationships to marshal capital into new investment vehicles. Just last week, it raised $4.8 billion to buy renewable-power facilities and separately raised $1.5 billion from Temasek, the California State Teachers’ Retirement System and others for two exchange-traded funds. The ETFs use proprietary research and analytics to find stocks that’ll benefit in the low-carbon transition.Fink has taken a vocal stance in the fight to reduce carbon emissions, declaring climate change an investment risk and pushing for sustainability. In his annual letter to CEOs in January, he said companies must disclose plans for making their business models compatible with a net-zero economy.Read more: Fink Demands Net-Zero Disclosure as Climate Push StrengthensTemasek and BlackRock already are partners in a Chinese asset-management business and Temasek is one of BlackRock’s top shareholders. Pillay, who takes over as Temasek CEO in October, said he’ll judge the new venture’s success on two measures: the speed at which its investments help achieve carbon abatement in the economy, and profitability.“We’re not going to look at sacrificing returns,” he said. “We may have to wait longer, given the early-stage element of this partnership, but we do believe the returns will come.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Less than two months after launching, the first North American Bitcoin ETF already reached $1 billion (C$1.25 billion) in assets, according to a statement from its issuer. The product from Toronto-based Purpose Investments, ticker BTCC, has seen massive interest as investors clamor for crypto exposure, especially in an exchange-traded fund wrapper. Although Europe has several crypto funds that effectively work like an ETF, this is the first anywhere to carry the ETF label.In its first trading day in February, more than $165 million worth of shares were exchanged, a huge start for a fund in the much smaller Canadian ETF market.Its quick cash accumulation underscores the intense demand for Bitcoin products, as U.S. issuers line up to win approval for the first Bitcoin ETF in the U.S. At least eight firms including VanEck Associates Corp. and WisdomTree Investments now have live applications for with the Securities and Exchange Commission, despite regulator reluctance to approve the strategies.Bitcoin rallied to an all-time high of around $63,246 on Tuesday, ahead of Coinbase Global Inc.’s listing later this week.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Reuters) -The S&P 500 hit an intraday record high on Tuesday and the Nasdaq composite index jumped as investors flocked to tech-related stocks, and markets took the halt in Johnson & Johnson's COVID-19 vaccine rollout and strong U.S. inflation in stride. The news came as U.S. data showed the consumer price index (CPI) in March rose by the most in more than 8-1/2 years, kicking off what the majority of economists expect will be a brief period of higher inflation. Wider markets remained positive as investors returned to high-flying technology names that flourished during coronavirus-induced lockdowns last year.
(Bloomberg) -- Follow Bloomberg on LINE messenger for all the business news and analysis you need.Indonesia’s central bank says the rupiah is “very undervalued” following a two-month slide. Investment banks and money managers are predicting further losses.Goldman Sachs Group Inc. says climbing U.S. yields and a potentially firmer dollar will keep hurting Indonesian assets in the near term, while PineBridge Investments Asia Ltd. says the rupiah will keep sliding due to the global risk-off trade and as overseas funds take home dividends. Loomis Sayles Investment Asia Pte. is bearish due to the Covid-19 situation.The rupiah has dropped 3.8% this year, the worst performer in emerging Asia after the Thai baht, as surging U.S. Treasury yields led to an outflow of funds from emerging-market assets. The currency fell as low as 14,635 per dollar on Tuesday, the weakest level since November.“The rupiah is among the most vulnerable among high-yield emerging-market currencies under risk-off sentiment,” said Arthur Lau, head of Asia ex-Japan fixed income at PineBridge in Hong Kong. “In the coming months, we expect the weakness of the rupiah to remain due to seasonal dividend and coupon repatriation in April-May and higher seasonal imports in the second quarter.”Indonesia’s currency is seen as a bellwether of risk in emerging Asia due to the relatively high foreign ownership of local assets and its generally open economy. The rupiah’s prolonged slide suggests there is a deeper shift away from developing nations than just a pullback from last year’s liquidity-fueled surge.Emerging-market stocks, bonds and currencies have all declined over the past three months with the biggest foreign-exchange losses in Brazil, Argentina and Turkey.“One of the most frequently asked investor questions in recent weeks has been whether it is time to buy the dip in Indonesia local markets?” Goldman Sachs analysts led by Zach Pandl in New York wrote in a research note this month. “The answer is ‘not yet’, in our view.”Goldman says its analysis indicates Indonesian bonds are not yet in cheap territory, and strong U.S. data suggests there’s the potential for even higher Treasury yields, which would be a further negative for the Asian nation’s assets.Bank Indonesia sees the rupiah rebounding due to the country’s low inflation and improving economic growth. Meanwhile, policy makers will seek to stabilize the currency in line with its fundamentals, Deputy Governor Dody Budi Waluyo said last week.Amundi Singapore Ltd. is also positive over a longer horizon.“Over the medium term, Indonesia will benefit from structural tailwinds, such as further finalization and implementation of the omnibus law, and from the relatively quicker economic recovery post-Covid,” said Joevin Teo, head of investment in Singapore. “This should continue to bolster investor interest and inflows in both the bond and currency markets.”Back among the bears, Loomis Sayles believes there’s little reason to be positive about the rupiah at present, especially with the country struggling to bring the coronavirus under control.“The fundamental reason for being bullish rupiah right now isn’t there,” said Thu Ha Chow, a portfolio manager at the firm in Singapore. In addition to the risk of a rising dollar and U.S. yields, “there’s no massive turnaround story in terms of what’s going on with the Covid situation,” she said.(Updates rupiah return in third paragraph, adds EM asset performance in sixth)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- U.S. regulators are throwing another wrench into Wall Street’s SPAC machine by cracking down on how accounting rules apply to a key element of blank-check companies.The Securities and Exchange Commission is setting forth new guidance that warrants, which are issued to early investors in the deals, might not be considered equity instruments and may instead be liabilities for accounting purposes. The move, reported earlier by Bloomberg News, threatens to disrupt filings for new special purpose acquisition companies until the issue is resolved.The accounting considerations mark the latest effort by the SEC to clamp down on the white-hot SPAC market. For months, the regulator has been raising red flags that investors aren’t being fully informed of potential risks associated with blank-check companies, which list on public stock exchanges to raise money for the purpose of buying other entities.The SEC began reaching out to accountants last week with the guidance on warrants, according to people familiar with the matter. A pipeline of hundreds of filings for new SPACs could be affected, said the people, who asked not to be identified because the conversations were private.“The SEC indicated that they will not declare any registration statements effective unless the warrant issue is addressed,” according to a client note sent by accounting firm Marcum that was reviewed by Bloomberg.In a SPAC, early investors buy units, which typically includes a share of common stock and a fraction of a warrant to purchase more stock at a later date. They’re considered a sweetener for backers and have thus far been considered equity instruments for accounting purposes. Sponsor teams -- the management of a SPAC -- are also typically given warrants as part of their reward to find a deal, on top of the founder shares.In a statement late Monday, SEC officials urged those involved in SPACs to pay attention to the accounting implications of their transactions. They said that a recent analysis of the market had shown a fact pattern in transactions in which “warrants should be classified as a liability measured at fair value, with changes in fair value each period reported in earnings.”“The evaluation of the accounting for contracts in an entity’s own equity, such as warrants issued by a SPAC, requires careful consideration of the specific facts and circumstances for each entity and each contract,” the officials said in the statement.The SEC issued its guidance after a firm asked the agency how certain accounting rules applied to SPACs, according to another person familiar with the matter. It’s unclear how many companies will be impacted by the move and not all warrants will be affected. Still, regulators consider it likely to be a widespread issue. Firms will be expected to review their statements and correct any material errors, said the person.The shift would spell a massive nuisance for accountants and lawyers, who are hired to ensure blank-check companies are in compliance with the agency. SPACs that are already public and that have struck mergers with targets may have to restate their financial results, the people familiar with the matter said.More than 550 SPACs have filed to go public on U.S. exchanges in the year to date, seeking to raise a combined $162 billion, according to data compiled by Bloomberg. That exceeds the total for all of 2020, during which SPACs raised more than every prior year combined.In an April 8 statement, John Coates, the SEC’s top official for corporate filings, warned Wall Street against viewing SPACs as a way to avoid securities laws. Claims that promoters face less legal liability than a traditional public offering are “uncertain at best,” Coates, who was one of the officials issuing Monday’s statement on accounting, said at the time.The deluge has overwhelmed those responsible for reviewing filings at the SEC, triggered a surge in liability insurance rates for blank-check companies and fueled market anxieties that the bubble is about to burst.(Updates with SEC official’s previous comment in penultimate paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The British pound has initially pulled back against yen but continues to find interest near the ¥150 level for buyers to come back and push it higher.
(Bloomberg) -- Online travel platform Trip.com Group Ltd. has raised about HK$8.5 billion ($1.1 billion) in its Hong Kong second listing after pricing the shares at HK$268 each.The company sold 31.6 million shares in the Hong Kong offering, according to a statement on Tuesday. The price represents a discount of about 2% to Trip.com’s closing price of $35.20 on Monday on the Nasdaq.One of Trip.com’s American depositary shares is equivalent to one ordinary share. The shares are due to start trading in Hong Kong on April 19.Trip.com’s U.S. shares have risen about 4% this year, giving the firm a market capitalization of $21 billion. It is part of a wave of U.S.-listed Chinese companies seeking a trading foothold in Hong Kong which has seen some of the country’s biggest tech giants such as Alibaba Group Holding Ltd. and JD.com Inc. raise over $36 billion since late 2019, data compiled by Bloomberg show.The second listings act as a way to hedge against the risk of being kicked off U.S. exchanges as a result of rising Sino-U.S. tensions, as well as to bring in more Asia-based investors. The U.S. Securities and Exchange Commission has said it will start implementing a law passed last year requiring overseas companies to let American regulators inspect their audits or face delisting.Recent second listings from the likes of Baidu Inc. and Bilibili Inc. fared less well than ones last year as they got caught up in a broader selloff of technology shares as investors rotated into sectors expected to benefit from a recovery of global growth. But tech names have since staged a comeback, with the Nasdaq Composite Index rising from lows hit at the beginning of March.JPMorgan Chase & Co., China International Capital Corp. and Goldman Sachs Group Inc. are joint sponsors for Trip.com’s listing.(Updates with company confirmation throughout the story.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Europe’s top financial watchdog has asked some of the bloc’s largest banks for additional information on their exposure to hedge funds after the recent collapse of Archegos Capital Management.The checks by the European Central Bank on lenders such as Deutsche Bank AG and BNP Paribas SA are standard practice after such a disruptive event for the industry, according to people familiar with the matter. All banks supervised by the ECB that have a significant hedge fund business are likely to face these questions, they said, asking not to be identified discussing the private information.Representatives for the ECB, Deutsche Bank and BNP declined to comment.The collapse of Archegos, a secretive family office that had made highly leveraged bets on stocks, could cause as much as $10 billion of losses for banks, analysts at JPMorgan Chase & Co. estimate. Swiss lender Credit Suisse Group AG alone has put the expected hit at 4.4 billion Swiss francs ($4.7 billion) in the first quarter.Euro-region banks, by contrast, have come away largely unscathed. Deutsche Bank had several billion dollars of exposure to Archegos when it started unraveling but the German lender quickly sold its holdings, Bloomberg News has reported. It said it won’t incur a loss as a result of the firm’s collapse.Archegos put on its trades with the help of so-called prime brokerage units at a number of investment banks, effectively borrowing large amounts to amplify returns. When the investments declined and lenders asked for more collateral, the firm collapsed and banks raced to unwind the positions with prices plummeting.Prime brokerage units make money by lending cash and securities to hedge funds and executing their trades. The business is risky but lucrative, earning European banks Barclays Plc, BNP Paribas, Credit Suisse, Societe Generale SA and UBS Group AG a combined $4 billion in 2019, according to a report from JPMorgan.“There is a need to scrutinize the reasons why the banks enabled the fund to leverage up to such an extent,” ECB executive board member Isabel Schnabel said in an interview with Der Spiegel last week. “It is a warning signal that there are considerable systemic risks that need to be better regulated.”(Adds previous comments from ECB executive in final paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
The US tech giant is buying artificial intelligence firm Nuance, best known for developing Apple's Siri.
Stocks were choppy and mixed in afternoon trading Tuesday as a drop in bond yields hurt bank stocks but helped big technology stocks. The Dow Jones Industrial Average fell 61 points, or 0.2%, to 33,683 and the Nasdaq was up 0.9%. The divergence was largely due to the fact the Dow has more bank stocks while the Nasdaq is heavily weighted with technology companies.
Roth accounts serve a special tax purpose — they’re funded with after-tax dollars and thus, are distributed tax-free (compared with a traditional account, where the money is contributed and grows tax-free but is taxed at withdrawal). Roth conversions are similar — investors move the money from their traditional accounts into Roth accounts and pay the tax upfront.
Bitcoin surged to a record high on Tuesday, a day ahead of Coinbase Global’s public stock listing — the latest coming-out party for cryptocurrencies. The price of Bitcoin rose as high as $63,209 before giving back some of those gains, according to Coindesk. This pattern of Bitcoin hitting new highs ahead of a major event is not new.
(Bloomberg) -- The window for Europe to sell its longest dated debt may be closing faster than countries expect.Demand for Britain’s longest-dated gilt fell to the lowest level since July 2018 at auction on Tuesday, with bids for the bond maturing in 2071 coming in at more than two times the 1 billion pounds ($1.38 billion) on offer. Austria and Spain both saw orderbooks fall for sales of 50-year and 15-year debt respectively.It’s a sign that the region’s bond markets are being hit by a double whammy of heavy supply and fears of a reflationary resurgence, which threatens to erode returns for investors. Nordea Bank Abp warned that the window to sell long-dated tenors is now closing as the economy recovers against a backdrop of an accelerating vaccine rollout. That could put pressure on the European Central Bank to dial back its bond purchase programs.“The odds are stacked against longer-dated supply being taken down well,” said Peter Chatwell, head of multi-asset strategy at Mizuho International Plc. “There is no likely outcome where long end rates are able to sustain a bid.”Around 15% of debt sales in the region during the first quarter had maturities of 25 years or more -- an all-time high, according Nordea -- as countries took advantage of the ECB’s bond-buying program to borrow at near record-low rates. But now, government bond yields have rebounded from all-time lows as investors begin to price an end to the pandemic.“It may become trickier later this year, as the economic recovery materializes and an environment of higher yields may start to look less remote,” Nordea’s chief strategist Jan von Gerich said, adding that the worst of the selling pressure in bonds appears to be over for now.Spain saw orderbooks drop by around 20 billion euros for a six billion euro debt sale, while in Austria, demand for its 50-year sale fell by around one billion euros, even with only 2 billion euros on offer. Its four-year sale did better, garnering above 26.6 billion euros of bids, around six times more than the amount being sold.One overwhelming force keeping a lid on yields is the ECB’s repeated pledge to keep monetary policy accommodative as the region shakes off economic pain from the pandemic. Data scheduled for Friday is expected to show euro-area consumer price inflation jumped to 1.3% last month, the highest in more than a year. Yet that would still be below the central bank’s goal of a reading close to, but below 2%. “I don’t sense a shift in attitude towards duration based on the better economic outlook, not yet at least,” said Antoine Bouvet, senior rates strategist at ING Groep NV. “The lower-for-longer narrative is still widely shared in Europe.”Austrian securities that come due in 2062 yield around 0.66%, up from around 0.10% in December. Fifty-year gilts currently yield around 1.12%, having climbed from less than 0.3% last year. That’s well below a market gauge of expected price rises over the next decade, which hit 3.83% this month, the highest level in more than a decade.(Updates with prices throughout, adds Mizuho comment in fourth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Our call of the day from Bank of America narrows down where investors see the most risk these days. Fingers are pointing at the world's most popular cryptocurrency.
Bitcoin has picked up a tail wind in the lead up to Coinbase's stock listing on Nasdaq
The Australian dollar has pulled back a bit during the course of the trading session on Tuesday, as we continue to see significant downward pressure.
‘The Big Move’ is a MarketWatch column looking at the ins and outs of real estate, from navigating the search for a new home to applying for a mortgage. The costs of homeownership are rising quickly across the country, so you’re not alone in feeling burdened.