{"id":2414,"date":"2016-11-14T08:34:52","date_gmt":"2016-11-14T08:34:52","guid":{"rendered":"http:\/\/localhost\/createsly\/?p=2414"},"modified":"2016-11-14T08:34:52","modified_gmt":"2016-11-14T08:34:52","slug":"dollar-climbs-as-u-s-yields-spike-asia-shares-divided","status":"publish","type":"post","link":"https:\/\/themes.divulgetechnologies.com\/flicknclick\/demo\/2016\/11\/14\/dollar-climbs-as-u-s-yields-spike-asia-shares-divided\/","title":{"rendered":"Dollar climbs as U.S. yields spike; Asia shares divided"},"content":{"rendered":"

The U.S. dollar hit a nine-month peak in Asia on Monday as the risk of faster domestic inflation and wider budget deficits sent Treasury yields ever higher, a painful mix for assets<\/span><\/span> in many emerging market countries.<\/p>\n

The reflation trade saw E-mini futures for the S&P 500 ESc1 add another 0.5 percent and spread betters pointed to solid opening gains for the major European bourses.<\/p>\n

The dollar bounded above 107 yen in brisk trade to hit 107.43 JPY=, while the euro touched its lowest since January around $1.0773 EUR=. It also made a nine-month high against a basket of currencies .DXY.<\/p>\n

\n

The dollar has been on a tear since the victory of Republican Donald Trump in the U.S. presidential election on Nov. 8 triggered a massive sell<\/span><\/span> off in Treasuries.<\/p>\n

<\/span>Yields on the U.S. 10-year Treasury notes climbed to their highest since January on Monday at 2.21 percent US10YT=RR, while 30-year paper reached 3 percent.<\/p>\n

<\/span>Just two days of selling last week wiped out more than $1 trillion across global bond markets, the worst rout in nearly 1-1\/2 years, according to Bank of America Merrill Lynch.<\/p>\n

<\/span>The jump in yields on safe-haven U.S. debt threatened to suck funds out of emerging markets, while the risk of a trade war between the United States and China soured the mood in Asia.<\/p>\n

<\/span>“There are signs that higher bond yields and the knock of a stronger US dollar are having a domino impact, taking down the weakest risky assets first, before moving on to the next,” said Alan Ruskin, global co-head of forex at Deutsche.<\/p>\n

<\/span>“There is only so much financial conditions tightening that risky assets can take when fiscal stimulus is still ‘a promise’ that lies some way in the future.”<\/p>\n

<\/span>MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was off 1 percent having suffered its lowest close since mid-July on Friday. Indonesia led the losses with a drop of 2.6 percent .JKSE.<\/p>\n

<\/span>In contrast, Japan’s Nikkei .N225 jumped 1.7 percent on the weakening yen to reach its highest in nine months.<\/p>\n

<\/span>It got an added fillip from data showing Japan’s economy grew at an annualized rate of 2.2 percent in the third quarter, handily beating forecasts.<\/p>\n

<\/span>The Dow .DJI romped up 5.4 percent last week in its best performance since 2011. The S&P 500’s .SPX 3.8 percent gain for the week was its strongest in two years.<\/p>\n

<\/span>Investors have favored drug and bank stock to reflect Trump’s campaign promises to simplify regulation in the health and financial sectors.<\/p>\n

<\/span><\/span>MARKETS SPY INFLATION<\/p>\n

<\/span>The stampede from bonds has seen 30-year yields post their biggest weekly increase since January 2009.<\/p>\n

<\/span>With the Republicans controlling Congress, there was a real prospect Trump could enact deficit-financed tax cuts and infrastructure spending, ending years of policy deadlock.<\/p>\n

<\/span>The resulting boost to inflation would only be heightened should Trump go through with plans for slapping tariffs on imports and deporting migrants.<\/p>\n

<\/span>The result was a surge in inflation expectations.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The U.S. dollar hit a nine-month peak in Asia on Monday as the risk of faster domestic inflation and wider budget deficits sent Treasury yields ever higher, a painful mix …<\/p>\n","protected":false},"author":1,"featured_media":2564,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[32,1],"tags":[53,54,55],"class_list":["post-2414","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-uncategorized","tag-business","tag-currency","tag-dollar"],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/themes.divulgetechnologies.com\/flicknclick\/demo\/wp-content\/uploads\/2016\/11\/unrkg2jh1j0-olu-eletu-e1483353007922.jpg?fit=1300%2C861&ssl=1","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/themes.divulgetechnologies.com\/flicknclick\/demo\/wp-json\/wp\/v2\/posts\/2414","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/themes.divulgetechnologies.com\/flicknclick\/demo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/themes.divulgetechnologies.com\/flicknclick\/demo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/themes.divulgetechnologies.com\/flicknclick\/demo\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/themes.divulgetechnologies.com\/flicknclick\/demo\/wp-json\/wp\/v2\/comments?post=2414"}],"version-history":[{"count":0,"href":"https:\/\/themes.divulgetechnologies.com\/flicknclick\/demo\/wp-json\/wp\/v2\/posts\/2414\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/themes.divulgetechnologies.com\/flicknclick\/demo\/wp-json\/wp\/v2\/media\/2564"}],"wp:attachment":[{"href":"https:\/\/themes.divulgetechnologies.com\/flicknclick\/demo\/wp-json\/wp\/v2\/media?parent=2414"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/themes.divulgetechnologies.com\/flicknclick\/demo\/wp-json\/wp\/v2\/categories?post=2414"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/themes.divulgetechnologies.com\/flicknclick\/demo\/wp-json\/wp\/v2\/tags?post=2414"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}