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Market Update

Record Low Bond Yields Around the World after ECB Stimulus


Author: Nichole Harper
ticker.com
Last Update: 12:58 PM ET January 23 2015

12:55 PM New York Bond yields took another dive and dropped to record low in the euro zone after the latest monetary stimulus in the euro zone. Bond prices rose across the euro zone including Greece, Portugal and Italy and yields fell near record lows in Germany, U.K., U.S. and Canada.

Stocks on Wall Street traded sideways and indexes in Europe surged for the second day in row after yields drop to record low around the globe.

On Wall Street trading, Tollbooth Strategy Index increased 0.6% or 63.89 to 10,166.88.

S&P 500 index fell 4.68 or 0.2% to 2,058.56 and the Nasdaq Composite Index rose 9.12 or 0.2% to 4,758.86.

World Bond Yields Drop

The latest ECB bond program announcement continue send ripples around bonds markets of the world for the second day in a row.

Yields of bonds continue to fall in the euro zone, U.K., U.S., Canada and Australia after the unprecedented monetary stimulus announced by the European Central Bank.

10-year bond yields of Italy dropped below 1.5% and U.S. 10-year Treasury note yields declined to 1.82%. Portugal debt yield of similar maturity dropped to 2.45%.

10-year German bund yields declined to a record 0.375% while rates on 30-year bond fell to 1%.

Even Greek bond yields closed down 70 basis points to 9.64% as the nation prepares for election on Sunday that may lead to a new coalition government.

Euro dropped to a new 10-year low to $1.111 and to 74.28 U.K. pence, the weakest in six years ahead of Greek election.

Smooth Power Transfer in Saudi Arabia

Commodities declined and copper declined for the sixth week in a row since early October and fell 1.6% on London Metal Exchange to $5,567 a ton. For the week, copper fell 2.6%.

Oil briefly rallied and closed nearly unchanged in London at $49.06 and in New York dropped 25 cents to $45.06 after the death of 91 year old King Abdullah of Saudi Arabia. King Abdullah was the sixth king of Saudi Arabia.

The newly appointed 79 year old King Salman Bin Abdulaziz Al Saud of the largest economy in the Middle East said the current oil policy will continue and retained the Oil Minister Ali Al-Naimi and appointed his son Mohammed bin Salman as defence minister, according to Saudi State Television today.

U.S. Home Sales Drop 3.1%

The National Association of Realtors reported seasonally adjusted annual rate for existing home sales in December rose 2.4% to 5.04 million from downwardly-revised 4.92 million in November but rose from 3.5% in December 2013.

For the year 2014, home sales fell 3.1% to 4.93 million from 5.09 million in 2013 and median existing-home price was $208,500, the highest since 2007.

U.S. Movers

General Electric Company (GE) gained 1.5% or 36 cents to $24.65 after the diversified technology and financial service provider reported total revenues in the fourth-quarter ending in December climbed 4% to $40 billion from a year ago period.

Net income in the quarter surged 61% to $5.15 billion or 51 cents a diluted share compared to $3.21 billion or 32 cents from the same quarter last year.

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Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc