Running out of appetite?

Ipek Ozkardeskaya ipekScope

Renewed tensions — or, rather, the increasingly crowded headlines surrounding existing and persistent Middle East tensions — weighed on market sentiment yesterday. Oil fluctuated, and Brent is extending gains above $102pb this morning. Bond yields continue their upward trajectory, pulling stock prices lower.

The cyclical STOXX 600 lost more than 1% during the session, versus a 0.22% retreat in the tech-heavy S&P 500.

On the bond front, the closely watched $39bn US 10-year auction drew strong demand at 5.30%, helping yields retreat from their highs. But the relief remained short-lived: the 10-year yield is pushing higher again this morning, ahead of a $22bn 30-year auction that will show whether appetite extends to the longest maturities.

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Author

Ipek Ozkardeskaya

ipekScope

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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