DJ Global Forex and Fixed Income Roundup: Market Talk

The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0618 GMT - TD Securities forecasts that U.S. Treasury yields will rise as the economy weathers the surge in cases of the Delta variant of the coronavirus, the Congress delivers more fiscal spending and the Federal Reserve tapers asset purchases, it says. TD's forecast of higher yields, however, has a risk, namely the continued demand from foreign investors amid a weakening outlook, while the Covid-19 surge also poses a key risk to the economic outlook, it says. TD Securities expects the 10-year U.S. Treasury yield to end the year at 1.75%, but over the near term it could remain in a 1.25%-1.4% range, it says. The 10-year U.S. Treasury yield is trading at 1.30%, according to Tradeweb. (emese.bartha@wsj.com)

0617 GMT - China's August factory activity is expected to have expanded at its slowest pace in a year and a half, as extreme weather and the spread of the Delta variant in the country caused strict lockdowns in some cities. China's official manufacturing purchasing managers index likely fell to 50.2 in August from 50.4 in July, according to the median forecast of 10 economists polled by The Wall Street Journal. The National Bureau of Statistics is set to release the data Tuesday. (singaporeeditors@dowjones.com)

0616 GMT - SGD weakens slightly against the USD in the afternoon Asian session, but its losses are likely to be limited by optimism over further reopening of Singapore's economy. The government's announcement over the weekend that Singapore had reached its 80% vaccination target has spurred reopening hopes, says Oanda. With the city-state hitting its target, SGD is likely to outperform other Asean currencies heading into 4Q, Oanda adds. USD/SGD is up 0.1% at 1.3473. (ronnie.harui@wsj.com)

0612 GMT - The Nikkei Stock Average closed 0.5% higher at 27789.29, supported by U.S. Fed Chair Powell's comments at the Jackson Hole symposium which spurred risk appetite. Shipping companies led the gains. Nippon Yusen advanced 2.8%, Mitsui O.S.K. Lines rose 5.1% and Kawasaki Kisen Kaisha added 2.3%. Stocks of real-estate developers also closed higher. Nomura Real Estate advanced 2.3%, Tokyu Fudosan gained 3.5% and Hulic Co. rose 1.7%. USD/JPY was at 109.75 compared with 109.85 late Friday in New York. The yield on the 10-year Japanese government bond was down half a basis point at 0.015%. (justina.lee@wsj.com)

(END) Dow Jones Newswires

August 30, 2021 02:18 ET (06:18 GMT)

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