U.S. 10-Yr Yield Rises to 1.2%, Inflation Expectations Build | Investing News

LONDON (Reuters) – A U.S. Treasury selloff gathered pace on Monday, with 10-year yields rising to 1.20% and inflation expectations at the highest since 2014 as investors priced an acceleration in economic recovery thanks to President Joe Biden’s spending package.

The $1.9 trillion stimulus package looks likely to be approved by Congress, bypassing Republican roadblocks. Friday’s lacklustre labour data appeared to highlight the urgency of getting state support to the economy.

Ten-year borrowing costs extended their rise to the highest since last March at 1.2%, while 30-year yields touched 2% for the first time since mid-February 2020.

Ten-year yields are up around 30 bps since end-2020.

Rabobank analysts said the catalyst appeared to be Treasury Secretary Janet Yellen’s comments “where she cited her expectation that, with sufficient fiscal support, the U.S. should be at full employment in 2022”.

The Treasury curve steepened further, with the gap between 2- and 10-year

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Asian Shares Near All-Time Peak, Oil Heads to $60 on Economic Revival Hopes | Investing News

SYDNEY (Reuters) – Asian shares hovered near record highs on Monday while oil edged closer to $60 a barrel on hopes a $1.9 trillion COVID-19 aid package will be passed by U.S. lawmakers as soon as this month just as coronavirus vaccines are being rolled out globally.

MSCI’s broadest index of Asia-Pacific shares outside Japan was last up 0.2% at 717.2, not far from last week’s record high of 730.6.

Japan’s Nikkei climbed 0.3% while Australian shares advanced 0.5% led by technology and mining shares.

E-mini futures for the S&P 500 rose 0.3% in early Asian trading.

Hopes of a quicker economic revival and supply curbs by producer group OPEC and its allies pushed oil to its highest level in a year as it edged near $60 a barrel. [O/R]

Global equity markets have scaled record highs in recent days on hopes of faster economic revival led by successful vaccine

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Japan Bank Deposits Rise at Record Pace as Firms, Households Hoard Cash | Investing News

TOKYO (Reuters) – Japanese bank deposits surged at a record annual pace in January, data showed on Monday, a sign companies and households were continuing to hoard cash to guard against the prolonged damage from the coronavirus pandemic.

Total deposits at commercial banks rose a record 9.8% in January from a year earlier to hit 806.2 trillion yen ($7.6 trillion), accelerating from a 9.3% gain in December, according to data released by the Bank of Japan.

Companies were piling up money from subsidies and loans they took up as a precaution against the health crisis, while households were holding back on spending due to the third wave of infections, a BOJ official told reporters.

The pace of growth in bank lending slowed, however, as big borrowers have already amassed precautionary loans to weather the hit from the pandemic.

Outstanding loans held by Japan’s four main categories of banks, including “shinkin”

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