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Published: Wed, April 25, 2018
Economy | By Melissa Porter

3% Isn't the Most Important Number in the Bond Market

3% Isn't the Most Important Number in the Bond Market

Traders are pricing in even more than that. Looking at gold today, the precious metal is enjoying a small rebound as US Treasury yields fall and the dollar trades sideways. The reports confirm that the first three months of the year have been largely positive for companies, as they enjoy a strong global economy, despite recent tensions between the USA and China over trade. The S&P 500 index ended nearly flat at 2,670.29. Eastern time. The Dow Jones industrial average added 5 points to 24,467. US gold futures rose 0.4 percent to $1,329.20 per ounce.

Caterpillar's products are used in a wide variety of industries including construction, power generation, mining and oil and gas drilling.

INDUSTRIAL WEAKNESS: 3M, which makes Post-it notes and industrial coatings and ceramics, shed 8.3 percent to $197.92 after it cut its annual forecast. As is often the case when there's a big, obvious trend that hits/breaks a big historical level, the conclusion of most professionals and laypersons is that "rates will continue to rise".

The yield on the 10-year US Treasury note climbed to 2.99% on Monday (23 April), edging closer to the benchmark 3% level, which could spark volatility across global financial markets.

It may be just a number-but it's a number that is heavily watched. "The market is very impatient". He said they are an opportunity for investors to diversify their holdings at a time of increased market volatility. Chemical companies and other materials makers could also see their profits affected as oil prices and other expenses rise. Goldman Sachs Group Inc., which has been one of the more aggressive in calling for Federal Reserve rate hikes, reiterated its 3.25 percent year-end call this week. The yield on the 10-year Treasury note rose to 2.99 percent from 2.98 percent. Earlier it peaked at 3 percent for the first time since January 2014.

But low interest rates have helped juice the economic recovery, so a return to higher rates could signal tougher times ahead.

Donald Trump's election with the promise of economic stimulus catapulted bond yields higher, sending the 10-year yield as high as 2.62 per cent in March 2017. But U.S. yields have been gradually rising anyway, as the Federal Reserve raises rates. Auto loans, home mortgages, and other loans are aligned with the yardstick 10-year yield. The company had reported solid results Monday, with strong gains in ad sales.

The dollar edged up to 108.67 yen from 108.65 yen. The euro fell to $1.2220 from $1.2233.

ENERGY: Benchmark U.S. crude oil gained 18 cents to $68.82 a barrel. Brent crude, used to price worldwide oils, fell 1.1 percent to $73.86 per barrel in London. CenterPoint fell 2.2 percent to $26.08. Hasbro said it took a loss over the last three months, and its stock lost 0.9 percent to $82.14. Natural gas stayed at $2.74 per 1,000 cubic feet. Platinum was 0.1-percent higher at $918 an ounce. Copper rose 1 percent to $3.14 a pound. The CAC 40 in France gained 0.2 percent.

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