Tuesday, 19 May 2015

Wall Street's Record Close Offset

U.S. Treasuries sank as stocks gained, and higher yields underpinned the dollar. The yield on benchmark 10-year Treasuries notes US10YT=RR stood at 2.221 percent, not far from its U.S. close of 2.228 percent on Monday.
Asian shares shrugged off early losses on Tuesday, as surging Chinese shares and Wall Street's record close offset continuing worries over Greece's fiscal woes. 

The euro, which jumped to nearly four-month highs against the dollar last week, skidded more than 1 percent on Monday. It was last down about 0.1 percent on the day at $1.1302 EUR=.

The dollar was steady on the day against its Japanese counterpart at 119.95 yen JPY=.  The BOJ is likely to stand pat at a policy meeting ending on Friday.

Expectations of more easing from the Bank of Japan kept the Japanese currency in check. The BOJ is seen expanding its massive stimulus program in October, according to most economists polled by Reuters - even though Governor Haruhiko Kuroda has said there is no need to do so.

U.S. crude futures edged up after slipping on Monday on the stronger dollar and oversupply concerns triggered by Saudi Arabia's report of its highest exports in nearly a decade. U.S. crude CLc1 rose about 0.1 percent in Asian trade to $59.48 a barrel, while Brent LCOc1 edged down 0.2 percent to $66.15.

Spot gold XAU= fell about 0.2 percent to $1,222.80 an ounce a day after it scaled a three-month high as disappointing U.S. economic data quashed expectations that the Fed would hike interest rates anytime soon.

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