Marketmind: Bonds find respite but China crisis festers
A rekindled bond market fire storm and simmering China property crisis have dragged world stocks to two-month lows, but the sell-off in Treasuries appeared to ease somewhat on Friday and more credit easing is now expected from Beijing next week.
But the swingeing losses in what are seen as 'safe assets' and how that infects borrowing more widely is unnerving for many, with 30-year U.S. fixed mortgage rates hitting their highest in more than 21 years this week at 7.09%. With the Federal Reserve's annual Jackson Hole conference next week now in focus, there was little respite on Thursday from the week's red-hot economic soundings and both labour market updates and the Philadelphia Fed's latest business survey showed brisk activity continued into August.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China investors jump into municipal bonds, hopes of state support outweigh debt woesChina's promise of a 'comprehensive' package to address local debt issues has triggered a rush into bonds issued by local government financing vehicles (LGFV) as investors sense an implicit state guarantee for these provincial firms.
Read more »
European shares open lower as rate jitters, China woes loom large By ReutersEuropean shares open lower as rate jitters, China woes loom large
Read more »
China Evergrande says bankruptcy protection filing does not involve petition By ReutersChina Evergrande says bankruptcy protection filing does not involve petition
Read more »
China appears to be building an airstrip on a disputed South China Sea islandChina appears to be constructing an airstrip on a disputed South China Sea island that is also claimed by Vietnam and Taiwan, according to satellite photos analyzed by The Associated Press.
Read more »