Bond Market Hesitates as Stock Movements Remain Indecisive: Financial Summary

Treasuries experienced pressure in a session shortened due to the holiday, marking a potential pause in the recent global bond market surge.

Yields on the ten-year US Treasury approached 4.5%. There were mixed movements in S&P 500 futures, though the index is on track for its fourth consecutive week of gains. Trading for stocks will conclude at 1 p.m. New York time today for Thanksgiving, and Treasury bonds are suggested to close at 2 p.m.

Andrew Brenner from NatAlliance Securities noted, “On this Black Friday with an early market close, we’re seeing a significant rise in Treasury yields due to yesterday’s events in Germany. A legal decision led to the suspension of Germany’s debt ceiling, causing a hike in the yields of 10-year German Bunds. This influenced other European rates and subsequently the US Treasuries.” Brenner also mentioned the market will encounter a substantial influx of new Treasuries next week. Investors have been increasingly investing in stocks, with the quickest inflow since early 2022, as peak interest rate bets intensify, according to Michael Hartnett of Bank of America Corp.

As per Hartnett’s note referencing EPFR Global data, global stock funds attracted about $40 billion in the fortnight ending November 21, the highest since February 2022. Despite this, cash funds have drawn nearly $1.2 trillion in 2023, outpacing the $143 billion into stocks, while bond funds have generally seen withdrawals.

In corporate developments, Nvidia Corp (NVDA) . experienced a decline following a Reuters report about a delay in launching a new AI chip in China until the first quarter. Tesla Inc (TSLA) . faces challenges, including potential price reductions from competitor BYD for its Dynasty series and an ongoing strike in Sweden.

Key Market Updates:

Stocks

• S&P 500 futures remained relatively stable as of 8:47 a.m. New York time
• Nasdaq 100 futures showed little change
• Futures on the Dow Jones Industrial Average were steady
• The Stoxx Europe 600 index saw minimal change
• The MSCI World index was unchanged

Currencies

• The Bloomberg Dollar Spot Index decreased slightly by 0.1%
• The euro increased by 0.1% to $1.0921
• The British pound gained 0.3% to $1.2576
• The Japanese yen held steady at 149.56 per dollar

Cryptocurrencies

• Bitcoin increased by 1.4% to $37,771.56
• Ether went up by 1.7% to $2,103.38

Bonds

• The yield on 10-year Treasuries rose eight basis points to 4.48%
• Germany’s 10-year yield increased two basis points to 2.64%
• Britain’s 10-year yield went up four basis points to 4.29%

Commodities

• West Texas Intermediate crude oil dropped by 1.3% to $76.09 a barrel
• Spot gold increased by 0.5% to $2,001.45 an ounce